
Contents
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Introduction Introduction
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UK Banking Supervision UK Banking Supervision
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Bank of England Bank of England
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Overseas banks and secondary banking crisis Overseas banks and secondary banking crisis
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Banking Act 1979 Banking Act 1979
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Johnson Matthey and the Banking Act 1987 Johnson Matthey and the Banking Act 1987
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BCCI and Barings BCCI and Barings
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Financial Crisis Financial Crisis
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Credit crisis Credit crisis
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Northern Rock Northern Rock
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UK regulatory response UK regulatory response
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Treasury acquisition Treasury acquisition
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Bank of England Bank of England
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Constitution and regulation Constitution and regulation
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Financial arrangements Financial arrangements
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Transfer of functions Transfer of functions
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Additional provisions Additional provisions
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Financial Services and Markets Financial Services and Markets
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General prohibition General prohibition
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Permission Permission
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Authorisation Authorisation
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Promotions Promotions
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Approved persons Approved persons
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Approved functions Approved functions
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Controlled functions Controlled functions
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Customer-dealing functions Customer-dealing functions
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Property functions Property functions
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Code of conduct Code of conduct
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Handbook of Rules and Guidance Handbook of Rules and Guidance
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Bank authorisation Bank authorisation
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Part IV permission Part IV permission
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High-level standards High-level standards
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Principles for Businesses (‘PRIN’) Principles for Businesses (‘PRIN’)
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Senior Management Arrangements, Systems, and Controls (‘SYSC’) Senior Management Arrangements, Systems, and Controls (‘SYSC’)
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Threshold Conditions (‘COND’) Threshold Conditions (‘COND’)
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Statements of Principle and Code of Practice for Approved Person (‘APER’) Statements of Principle and Code of Practice for Approved Person (‘APER’)
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Fit and Proper Test for Approved Persons (‘FIT’) Fit and Proper Test for Approved Persons (‘FIT’)
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General Provisions (‘GEN’) General Provisions (‘GEN’)
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Financial Stability and Market Confidence Sourcebook (‘FINMAR’) Financial Stability and Market Confidence Sourcebook (‘FINMAR’)
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Banking Supervision Banking Supervision
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Supervisory approach (SUP 1A) Supervisory approach (SUP 1A)
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Information (SUP 2) Information (SUP 2)
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Auditors (SUP 3) Auditors (SUP 3)
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Actuaries (SUP 4) Actuaries (SUP 4)
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Skilled persons report (SUP 5) Skilled persons report (SUP 5)
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Part 4A permission, variation, or cancellation (SUP 6) Part 4A permission, variation, or cancellation (SUP 6)
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Individual requirements (SUP 7) Individual requirements (SUP 7)
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Waiver and modification of rules (SUP 8) Waiver and modification of rules (SUP 8)
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Individual guidance (SUP 9) Individual guidance (SUP 9)
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Approved persons (SUP 10A and B) Approved persons (SUP 10A and B)
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Controllers and close links (SUP 11) Controllers and close links (SUP 11)
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Appointed representatives (SUP 12) Appointed representatives (SUP 12)
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Passport rights (SUP 13) Passport rights (SUP 13)
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Incoming firms (SUP 13A and 14) Incoming firms (SUP 13A and 14)
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Notifications (SUP 15) Notifications (SUP 15)
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Reporting requirements (SUP 16) Reporting requirements (SUP 16)
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Transaction reporting (SUP 17) Transaction reporting (SUP 17)
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Integrated Prudential Regulation Integrated Prudential Regulation
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Basel II and Basel III Basel II and Basel III
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Capital Requirements Directive Capital Requirements Directive
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Prudential Sourcebook Prudential Sourcebook
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General Prudential Sourcebook (‘GENPRU’) General Prudential Sourcebook (‘GENPRU’)
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Prudential Sourcebook (‘BIPRU’) Prudential Sourcebook (‘BIPRU’)
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Application—BIPRU 1 Application—BIPRU 1
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Capital—BIPRU 2 Capital—BIPRU 2
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Standardised Credit Risk Approach—BIPRU 3 Standardised Credit Risk Approach—BIPRU 3
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IRB Approach—BIPRU 4 IRB Approach—BIPRU 4
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Credit Risk Mitigation—BIPRU 5 Credit Risk Mitigation—BIPRU 5
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Operational Risk—BIPRU 6 Operational Risk—BIPRU 6
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Market Risk—BIPRU 7 Market Risk—BIPRU 7
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Group Risk—BIPRU 8 Group Risk—BIPRU 8
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Securitisation—BIPRU 9 Securitisation—BIPRU 9
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Large Exposures—BIPRU 10 Large Exposures—BIPRU 10
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Disclosure—BIPRU 11 Disclosure—BIPRU 11
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Liquidity—BIPRU 12 Liquidity—BIPRU 12
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Counterparty Risk—BIPRU 13 Counterparty Risk—BIPRU 13
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Unsettled transactions and free deliveries—BIPRU 14 Unsettled transactions and free deliveries—BIPRU 14
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Ring-Fencing Ring-Fencing
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Recovery and Resolution Plans Recovery and Resolution Plans
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Financial Stability Board Financial Stability Board
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UK RRPs UK RRPs
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EU BRR EU BRR
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Resolution Resolution
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Banking (Special Provisions) Act 2008 Banking (Special Provisions) Act 2008
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Banking Act 2009 Banking Act 2009
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Resolution powers and objectives Resolution powers and objectives
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Stabilisation Stabilisation
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Insolvency and administration Insolvency and administration
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Financial Stability Financial Stability
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Cite
Extract
Introduction
Banks are subject to the new integrated regulatory regime set up under FSMA as amended by the most recent institutional changes brought into effect under the FSA 2012. These specifically provide for the establishment of the PRA as a subsidiary of the Bank of England with the other non-systemic functions of the FSA being transferred to the FCA.1 While much of the substantive and operational systems set up under FSMA reflected the earlier supervisory practice applied by the Bank of England under the Banking Acts 1979 and 1987, the system had inevitably become more formal and rules based. A number of changes were adopted by the FSA to attempt to replace a more formalistic approach which included the development of a more principles based system of oversight and direction. One of the most significant objectives of the new institutional structure set up with the PRA and FCA is to attempt to restore more of the personal judgement and discretion that applied before, which is reflected in the new operating systems and supervisory approaches adopted by both the PRA and FCA.
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