PRA publishes its review of the ring-fencing rules

On 25 January 2024, the PRA published the conclusions of its review of its rules on ring-fencing as set out in the PRA Rulebook (the “Rulebook”). This review was conducted throughout 2023 pursuant to the PRA’s statutory duty to review the ring-fencing regime in the Rulebook every five years, and constitutes the first of such reviews. The report is published on the heels of the government’s September 2023 consultation paper outlining proposals for material near-term reforms to the ring-fencing regime as a whole (see here).

In its report, the PRA concludes that on the whole, most of its rules are performing satisfactorily and no significant gaps have been identified. However, it also recognises that there are areas where the rules and associated guidance may benefit from further improvements and clarifications. Any amendments will only be proposed through further consultations to be announced in due course.