Abbreviation PRA Region served United Kingdom Main organ Board of directors | Formation 1 April 2013 Founded 1 April 2013 | |
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Predecessor Financial Services Authority Headquarters 20 Moorgate
London EC2R 6DA Key people Mark Carney
(Governor of the Bank of England)
Sam Woods
(Deputy Governor of the Bank of England and Chief executive) CEO Andrew Bailey (1 Apr 2013–) | ||
Prudential regulation authority united kingdom
The Prudential Regulation Authority (PRA) is a United Kingdom financial services regulatory body, formed as one of the successors to the Financial Services Authority (FSA). The authority is structured as a limited company wholly owned by the Bank of England and is 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.
Contents
The PRA was created by the Financial Services Act 2012 and formally began operating alongside the new Financial Conduct Authority on 1 April 2013. As the Bank of England is operationally independent of the Government of the United Kingdom, the PRA is a quasi-governmental regulator, rather than an arm of the government per se. The PRA has its main offices at 20 Moorgate, near the Bank's central offices on Threadneedle Street.
Role
The PRA's role is defined in terms of two statutory objectives: to promote the safety and soundness of the firms it regulates and, specifically for insurers, to contribute to the securing of an appropriate degree of protection for policyholders (sections 2B and 2C of the Financial Services and Markets Act 2000 (as amended)). In promoting safety and soundness, the PRA focuses primarily on the harm that firms can cause to the stability of the UK financial system. A stable financial system is one in which firms continue to provide critical financial services – a precondition for a healthy and successful economy.
It will have close working relationships with other parts of the Bank, including the Financial Policy Committee and the Special Resolution Unit. The PRA's most significant supervisory decisions will be taken by its Board – comprising the Governor of the Bank of England, the Deputy Governor for Financial Stability, the chief executive officer of the PRA (and Deputy Governor for Prudential Regulation), and independent non-executive members. The Board will be accountable to Parliament.
The PRA's approach to regulation and supervision has three characteristics:
The PRA approach to supervision will not seek to operate a "zero-failure" regime. Rather, the PRA will seek to ensure that a financial firm which fails does so in a way that avoids significant disruption to the supply of critical financial services.
List of chief executives
The chief executive of the PRA is also the Bank of England Deputy Governor for Prudential Regulation. The following is a list of chief executives since the PRA's inception: