Introduction to the PRA and Its Enforcement Powers
The Prudential Regulation Authority (PRA) was created in 2013, following a restructuring in UK regulation after the financial crisis, which saw the creation of the PRA and the UK Financial Conduct Authority (FCA) in place of the old Financial Services Authority. The PRA, which is part of the Bank of England, is the prudential regulator of banks, building societies, credit unions, insurers and major investment firms in the UK. In essence, the PRA is concerned with the stability of the UK financial system and accordingly that firms have in place adequate capital and risk systems and controls. It has both supervisory and disciplinary powers. The PRA’s regulation may extend to international firms not incorporated in the UK (for example subsidiaries or branches of non-UK firms).
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