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Textual Amendments
F1Pt. 1A substituted for Pt. 1 (24.1.2013 for specified purposes, 19.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 6(1), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(b)(c)(2), Sch. Pts. 2, 3, 4; S.I. 2013/423, art. 3, Sch.
(1)In discharging its general functions the PRA must, so far as is reasonably possible, act in a way which advances its general objective.
(2)The PRA's general objective is: promoting the safety and soundness of PRA-authorised persons.
(3)That objective is to be advanced primarily by—
(a)seeking to ensure that the business of PRA-authorised persons is carried on in a way which avoids any adverse effect on the stability of the UK financial system, and
(b)seeking to minimise the adverse effect that the failure of a PRA-authorised person could be expected to have on the stability of the UK financial system.
(4)The adverse effects mentioned in subsection (3) may, in particular, result from the disruption of the continuity of financial services.
(5)In this Act “PRA-authorised person” means an authorised person who has permission—
(a)given under Part 4A, or
(b)resulting from any other provision of this Act,
to carry on regulated activities that consist of or include one or more PRA-regulated activities (see section 22A).
(6)Subsection (1) is subject to sections 2C and 2D.
(1)In discharging its general functions so far as relating to a PRA-regulated activity relating to the effecting or carrying out of contracts of insurance or PRA-authorised persons carrying on that activity, the PRA must, so far as is reasonably possible, act in a way—
(a)which is compatible with its general objective and its insurance objective, and
(b)which the PRA considers most appropriate for the purpose of advancing those objectives.
(2)The PRA's insurance objective is: contributing to the securing of an appropriate degree of protection for those who are or may become policyholders.
(3)This section applies only if the effecting or carrying out of contracts of insurance as principal is to any extent a PRA-regulated activity.
(1)Subsection (2) applies to an order under section 22A which—
(a)is made at any time after the coming into force of the first order under that section, and
(b)contains a statement by the Treasury that, in their opinion, the effect (or one of the effects) of the proposed order is that an activity would become a PRA-regulated activity.
(2)An order to which this subsection applies may specify an additional objective (“the specified objective”) in relation to specified activities that become PRA-regulated activities by virtue of the order (“the additional activities”).
(3)In discharging its general functions so far as relating to the additional activities or PRA-authorised persons carrying on those activities, the PRA must, so far as is reasonably possible, act in a way—
(a)which is compatible with its general objective and the specified objective, and
(b)which the PRA considers most appropriate for the purpose of advancing those objectives.
(1)The PRA must—
(a)determine its strategy in relation to its objectives, and
(b)from time to time review, and if necessary revise, the strategy.
(2)Before determining or revising its strategy, the PRA must consult the court of directors of the Bank of England about a draft of the strategy or of the revisions.
(3)The PRA must determine its strategy within 12 months of the coming into force of this section.
(4)The PRA must carry out and complete a review of its strategy before the end of each relevant period.
(5)The relevant period is 12 months beginning with the date on which the previous review was completed, except that in the case of the first review the relevant period is the period of 12 months beginning with the date on which the strategy was determined under subsection (3).
(6)The PRA must publish its strategy.
(7)If the strategy is revised the PRA must publish the revised strategy.
(8)Publication under subsection (6) or (7) is to be in such manner as the PRA thinks fit.
In this Act, a reference, in relation to any function of the PRA, to the objectives of the PRA is a reference to its general objective but—
(a)so far as the function is exercisable in relation to the activity of effecting or carrying out contracts of insurance, or PRA-authorised persons carrying on that activity, is a reference to its general objective and its insurance objective;
(b)so far as the function is exercisable in relation to an activity to which an objective specified by order by virtue of section 2D(2) relates, or PRA-authorised persons carrying on that activity, is a reference to its general objective and the objective specified by the order.
Nothing in sections 2B to 2D is to be regarded as requiring the PRA to ensure that no PRA-authorised person fails.
(1)When discharging its general functions in a way that advances its objectives (see section 2F), the PRA must so far as is reasonably possible act in a way which, as a secondary objective, facilitates effective competition in the markets for services provided by PRA-authorised persons in carrying on regulated activities.
(2)In discharging its general functions, the PRA must also have regard to the regulatory principles in section 3B.]
Textual Amendments
F2S. 2H substituted (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 130(1), 148(5); S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1
(1)The PRA must give, and from time to time review, guidance about how it intends to advance its objectives in discharging its general functions in relation to different categories of PRA-authorised person or PRA-regulated activity.
(2)Before giving or altering any guidance complying with subsection (1), the PRA must consult the FCA.
(3)The PRA must publish the guidance as for the time being in force.
(1)For the purposes of this Chapter, the PRA's general functions are—
(a)its function of making rules under this Act (considered as a whole),
(b)its function of preparing and issuing codes under this Act (considered as a whole), and
(c)its function of determining the general policy and principles by reference to which it performs particular functions under this Act.
(2)Except to the extent that an order under section 50 of the Financial Services Act 2012 (orders relating to mutual societies functions) so provides, the PRA's general functions do not include functions that are transferred functions within the meaning of section 52 of that Act.
(3)For the purposes of this Chapter, the cases in which a PRA-authorised person (“P”) is to be regarded as failing include those where—
(a)P enters insolvency,
(b)any of the stabilisation options in Part 1 of the Banking Act 2009 is achieved in relation to P, or
(c)P falls to be taken for the purposes of the compensation scheme to be unable, or likely to be unable, to satisfy claims against P.
(4)In subsection (3)(a) “insolvency” includes—
(a)bankruptcy,
(b)liquidation,
(c)bank insolvency,
(d)administration,
(e)bank administration,
(f)receivership,
(g)a composition between P and P's creditors, and
(h)a scheme of arrangement of P's affairs.]