UK: PRA statement of policy - the use of powers to address serious failings in the culture of firms

The Prudential Regulation Authority has published a policy statement concerning the use of its powers to address serious failings in the culture of firms: see here (pdf). The statement explains that the PRA considers a variety of factors to identify failings in culture, including governance, incentives, risk awareness, and the ability to challenge senior management. It also provides some examples of the governance changes the PRA has required firms to make, or which firms have voluntarily agreed to make, including requiring a firm to put in place appropriate governance structures and committees to oversee regulatory concerns about meeting regulatory requirements.