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The PRA uses judgement to
focus its work on those firms
and activities posing the
greatest risks to the financial
system and to policyholders.
It assesses the soundness of
firms against the risks they are
facing and risks that could arise in
future. The PRA works with firms
to minimise these risks. But that
doesn’t mean a firm won’t be
allowed to fail.
If the worst happens, the
PRA works with the Bank of
England’s Special Resolution
Unit to ensure that a bank can
fail without disrupting the
supply of key financial services.
This means the wider financial
system can continue to support
the economy and the needs of
the public.
The PRA Board is accountable
to Parliament, mainly through
regular appearances of its Chief
Executive before the House
of Commons’ Treasury Select
Committee.
The PRA publishes its own Annual
Report.
The PRA’s most important
decisions are taken by its Board.
The PRA Board is chaired by the
Governor of the Bank of England.
Its members include the Bank’s
Deputy Governors for financial
stability and prudential regulation.
The PRA Board has a majority of
independent external members,
including the Chief Executive of
the Financial Conduct Authority
(FCA) and four others selected
for their experience and
expertise in financial services.
The PRA works closely with
other parts of the Bank of
England, especially the Financial
Policy Committee, which is able
to give Directions and make
Recommendations to the PRA.
It cooperates closely with its
sister regulator, the FCA.
The FCA is a separate institution
that acts to prevent market abuse
and ensures that consumers get a
fair deal from financial firms.