What is the proactive intervention framework?

What is the Proactive Intervention Framework? When drawing up a firm’s supervisory plan, PRA supervisors will consider the firm’s proximity to failure. The PRA’s judgment about proximity to failure will be captured in the firm’s position within the Proactive Intervention Framework (PIF).

What is the main purpose of the PRA?

The PRA has two primary objectives: a general objective to promote the safety and soundness of the firms we regulate; and an objective specific to insurance firms, to contribute to ensuring that policyholders are appropriately protected.

How does the PRA operate?

The PRA supervises firms to assess whether they are safe and sound, and whether they meet, and are likely to continue to meet, the Threshold Conditions. The PRA’s approach is forward-looking: it assesses firms not just against current risks, but also against those that could plausibly arise in the future.

What powers does the PRA have to take action to reduce risks?

If a firm or individual fails to comply with relevant requirements, we can take action. This could be by way of imposing a financial penalty or public censure, for example. We can also prohibit an individual from working in the regulated financial services sector.

What is the Resolvability assessment framework?

The Resolvability Assessment Framework (RAF) sets out how the Bank of England (‘the Bank’), as the UK’s resolution authority, assesses UK financial firms’ resolvability and introduces a public disclosure regime.

What are the PRA threshold conditions?

The PRA’s statutory Threshold Conditions,1 which set out the minimum requirements that firms must meet in order to be permitted to carry on the regulated activities in which they engage, are designed to promote safety and soundness and are crucial to the operation of the PRA’s regulatory regime.

What is difference between FCA and PRA?

The FCA acts as watchdog for the conduct of all regulated and authorised firms and individuals (GT News, Apr 13). The FCA aims to;⦁ Protect consumers. ⦁ Enhance the integrity of the UK financial system. ⦁ Help maintain competitive markets and promote effective competition in the interests of consumers.

Who do the PRA regulate?

The Prudential Regulation Authority regulates around 1,500 banks, building societies, credit unions, insurers and major investment firms.

What does the PRA regulate?

The Prudential Regulation Authority (PRA) is a part of the Bank of England and responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. It sets standards and supervises financial institutions at the level of the individual firm.

What powers do PRA have?

What does Resolvability mean?

Resolvabilitynoun. the quality or condition of being resolvable; resolvableness.

What are the main objectives of the PRA?

The PRA has two primary objectives: a general objective to promote the safety and soundness of the firms it regulates, focusing on the adverse effects that they can have on the stability of the UK financial system; and an objective specific to insurance firms, to contribute to ensuring that policyholders are appropriately protected.

Which is the best definition of proactive intervention?

1. Initiating Processes/Deliverables —Recognizing that a project or phase should begin and committing to do so. These processes and associated deliverables development take place prior to the beginning of the project: a. Develop and review Proposal Statements of Works (SOWs), including the project Management SOW b.

How are the PRA and the FA working together?

The PRA and the FA are committed to working together and co-ordinating firm supervision and regulation across a range of areas. The PRA and the FCA have different objectives, though, and the benefits of the new regime are best achieved if both institutions focus on their own responsibilities.

What is the role of the PRA in banking supervision?

Business risk 30 III Safeguarding safety and soundness 33 Management and governance 34 Risk management and controls 39 Capital 41 Liquidity 47 Resolvability 49 IV Supervisory activity 52 Assessing risk 52 Box 5 Authorising new firms 55 Proactive Intervention Framework 56