The Rulebook publishes rules made by the PRA under powers conferred by the Financial Services and Markets Act 2000 (FSMA). The Rulebook applies to all PRA-authorised persons (and in some cases, unauthorised persons and individuals) and contains the prudential requirements relevant to them. The Rulebook contains the most accessible version of the PRA’s rules which are consolidated on a regular basis. The definitive rules are always contained in the PRA's rule-making instruments.
HOW IS THE RULEBOOK STRUCTURED?
The Rulebook is split into five sectors. Each sector is divided into separate Parts. Parts cover one broad topic, each divided into chapters that contain a narrow grouping of rules.
The five sectors are:
1. Capital Requirement Regulation firms (CRR Firms)
2. Non-Capital Requirement Regulation firms (Non-CRR Firms)
3. Solvency II firms (SII Firms)
4. Non-Solvency II firms (Non-SII Firms)
5. Non-authorised persons
The Rulebook structure allows firms to access all of the rules that apply to them within the relevant sector – click on the relevant blue box (‘CRR Firms’, ‘SII Firms’ etc.) when you enter the site.
Generally, applicable content will not sit outside of these sectors. Content is tailored to specific firm types and cross-sectoral material (rules that apply to all firm types, e.g. Authorisation rules and rules about PRA fees) will be duplicated. Rules which are duplicated can be viewed in their entirety whichever blue box you click on.
Please note that, for a transitional period, PRA fees and a number of other topics continue to be governed by the PRA Handbook – see below under ‘What has happened to the PRA Handbook?’
WHY DOES THE RULEBOOK CONTAIN A GLOSSARY AND PART GLOSSARY?
The Rulebook contains a Glossary which incorporates terms used in several different Parts. The Part Glossary contains terms used in a specific Part only. Part terms move to the Glossary once they are used in two or more Parts. If a term is defined in both the Glossary and in a Part Glossary, the definition in the Part will apply within that Part; the definition in the Glossary will apply to the rest of the Rulebook.
HOW TO SEE WHAT CHANGES HAVE BEEN, OR ARE DUE TO BE, MADE TO THE RULEBOOK?
You can view the Rulebook with changes that have been made by the PRA, and which are due to come into force on or before a specific date in the future, by changing the date in the date selector at the top left of the screen.
WHAT'S THE DIFFERENCE BETWEEN GENERAL AND CHAPTER APPLICATION PROVISIONS?
Application provisions explain the type of firm or person to which a Part or Chapter applies. General application provisions may apply to all firms or specify the subset of firms to which the Rules within a Part apply. Chapter application provisions narrow down a general application provision. The defined term ‘firm’ is used throughout a Part to refer to the firms to which the rules within a Part apply (this avoids having to repeat a potentially long description of a class of firms many times over).
WHY DO APPLICATON PROVISIONS ALWAYS STAY AT THE TOP OF THE SCREEN?
Application provisions always stay on the top of the screen to enable the user to see the firm or persons to which the rules being viewed apply.
WHAT HAS HAPPENED TO THE PRA HANDBOOK?
The new PRA Rulebook is the product of a two-year project to transpose the shared PRA/Financial Conduct Authority (FCA) Handbook into the new Rulebook format.
Once transposition is completed in relation to a rule, the PRA Handbook ceases to have effect and the Rulebook applies. This is already the case for the vast majority of rules.
In some cases, however, it was not appropriate to complete the transposition exercise before the online rulebook went live. This was for a variety of reasons – e.g. in the case of FEES 1-4, the need to align the effective date for any new the rules with start of the PRA fee year.
The PRA Handbook remains in force in relation to the following subject areas:
|Topic||Location in PRA Handbook|
|PRA fees||FEES 1-4 (the Fees Manual)|
|General provisions||GEN 2|
|Liquidity standards||BIPRU 12|
|Cross sector groups||GENPRU 3|
|Approved persons||SUP 10B|
|Reporting requirements||SUP 16|
|Senior management, arrangements, systems and controls||SYSC 1-9, 12, 20, 21|
|Fitness and proper test for approved persons||FIT|
|Prudential sourcebook for insurers||INSPRU|
|Interim prudential standards for friendly societies||IPRU-FSOC|
|Interim prudential sourcebook for insurers||IPRU-INS|
|Interim prudential sourcebook for investment businesses||IPRU-INV|
To ensure that firms can find all PRA rules applicable to them which are in force at any time, the remaining PRA Handbook provisions have been uploaded to the new website to sit alongside the new Rulebook. You will know that you are looking at the PRA Handbook and not the Rulebook because the Handbook provision will appear with an ‘H’ next to it. PRA Handbook glossary terms are also identified in this way.