UK Prudential Regulation Authority Consults On Board Responsibilities

On May 21, 2015, the PRA published a consultation paper which includes a draft supervisory statement on the PRA's expectations for board governance. The purpose of the supervisory statement would be to identify those aspects of board governance to which the PRA attaches particular importance and on which the PRA is likely to focus during the course of supervision. The draft statement confirms the PRA's view that the accountability of Senior Managers under the new Senior Manager Regime would be additional and complementary to the collective responsibility of the board members.

The proposed supervisory statement would apply to all PRA-regulated firms—banks, insurance firms, certain large investment firms and credit unions. However, the PRA recognizes that different governance models apply depending on the nature and size of the firm and that the degree of supervisory attention may vary from firm to firm depending on the risk profile of the firm and the potential