UK: the new Prudential Regulation Authority

The Bank of England and Financial Services Authority published a paper today providing further information about the manner in which the new Prudential Regulation Authority (PRA) will operate: see here (pdf). Further background information is also provided in speeches delivered today at the PRA conference by Hector Sants (the chief executive designate of the PRA) and Andrew Bailey (the deputy chief executive designate of the PRA): see, respectively, here and here (pdf). In his speech Mr Sants explained that central to the new supervisory model was the presumption that regulators could not rely on the judgement of firms' management and needed, therefore, to reach their own view about the significant issues affecting firms' safety and soundness. A video recording of the conference will be available here.