CP11/23 – PRA statement on the review of rules

In view of the enactment of the Financial Services and Markets Act 2023 and the subsequent new powers and obligations of the Prudential Regulation Authority (PRA) as regards the review of retained EU regulations and the creation of new rules to replace existing EU law, the PRA has published a new consultation paper. In it, the PRA presents its proposed approach to the review of retained EU regulations which contains the following four elements which are described in detail in Annex 1 and 2 of the consultation paper:
1. the monitoring of existing rules and the ongoing assessment as to their effectiveness, efficiency, and proportionality.
2. the identification and prioritization of rules to be reviewed based on the above noted monitoring activity, regulatory requirements, and other issues in this context (e.g. time since the last review, significance of the issue, contribution of the rule to market compliance, etc.).
3. the determination of the type of review the PRA seeks to conduct, e.g. stakeholder engagements, call for reviews, quantitative analysis, to name a few.
4. the performance of the review and subsequent follow-up actions such as the communication of the review results to stakeholders.
In its consultation paper now, the PRA seeks feedback on
– this general approach to the review of rules and regulations,
– the rules that should be prioritized by the PRA,
– the information that the PRA shall collect during its review (of retained EU legislation), and
– the type of review method the PRA should select.
—
The consultation will be open for public comment until September 29, 2023.