PRA Regulatory Digest – February 2023

The Prudential Regulation Authority (PRA) has published the latest version (February 2023) of its monthly regulatory digest. The digest outlines the Authority’s ongoing regulatory activities ranging from the launch of consultations, to the issuance of policy statements, to the implementation of regulatory changes and provides links to corresponding (legal) documents. The regulatory digest presents a viable source of information to stay up-to-date on regulatory issues and to ensure preparedness for upcoming changes as it furnishes a briefly summarized overview of all relevant ongoing issues.
This latest version presents the following highlights:
– the issuance of Policy Statement PS1/23 on Remuneration: Unvested pay, Material Risk Takers and public appointments in which the PRA clarifies that instruments issued as part of the variable pay of material risk takers should subsequently NOT be converted into other instruments, provides for an exemption from this rule in case of the subsequent public appointment of a material risk taker that causes conflicts of interest, and clarifies just in which circumstances such exemption and subsequent rule waiver may be granted by the PRA (please see EventID #19672 in this context).
– the launch of Consulation Paper (CP3/23) in which the PRA proposes amendments to its Rulebook and the introduction of a new „Statement of Policy“ to specify the operation of the Financial Services Compensation Scheme (FSCS) in case of write-downs of an insurer in financial difficulties, the notification requirements of insurers with respect to policy holders after a write-down order has been effected before court, and the expectations of the PRA as regards the application for a write-down and the appointment of a write-down manager (please see EventID #19762 in this context);
– the launch of Consulation Paper (CP4/23) in which the PRA proposes several measures to reduce the prudential regulation requirements of non-systemic, small investment firms, banks, and building societies (please see EventID #19928 in this context); and
– the launch of Consulation Paper (CP5/23) in which the PRA seeks to ease remuneration-related requirements of small CRR-regulated firms (please see EventID 19879 in this context).