Prudential Regulation Authority Rulebook

2.1

Alongside PRA rules, the PRA also issues supervisory approach documents,^[1] SoPs,^[2] and SSs.^[3]

• The supervisory approach documents set out information on the PRA’s supervisory practices including its approach to the supervision of different types of firms.
• SoPs are the formal documents in which the PRA details its policy on a particular matter. SoPs usually set out the PRA’s approach to exercising powers conferred by the Financial Services and Markets Act 2000 (‘FSMA’). They do not contain the PRA’s expectations, which are set out in supervisory statements.
• Supervisory statements set flexible frameworks for firms, incorporating new and existing expectations. They focus on the PRA’s expectations and are aimed at facilitating firm and supervisory judgement in determining whether they meet those expectations. They do not set absolute requirements – these are contained in rules.

2.2

In general, the PRA has not made line-by-line amendments to non-binding materials before the end of the transition period. However, after the end of the transition period, firms should read and interpret these materials in light of the UK’s withdrawal from the EU, as well as the amendments that have been made to related legislation under the European Union (Withdrawal) Act 2018 (the ‘Act’). This includes changes to the PRA Rulebook and Binding Technical Standards, under the Act. In particular, firms should take into account the key changes to legislation outlined in Chapter 3 of this SS. For example, SSs that set out the PRA expectations for firms in relation to European joint decision processes are no longer relevant. Firms should also interpret these materials in light of the use of any relevant transitional relief, including that provided by the Bank and PRA under the temporary transitional power.