Prudential Regulation Authority Rulebook

3.1

Following changes in the structure of regulation in the United Kingdom which took effect on 1 April 2013, the FSA ceased to exist and was replaced by two new regulatory bodies, the Financial Conduct Authority (FCA) and the PRA, each of which was given its own statutory objectives.^[3]

3.2

The rules and guidance contained in COBS 20 of the FSA’s Handbook were primarily aimed at ensuring the fair treatment of with-profits policyholders and the majority of these (including COBS 20.2.55R and 56R) therefore now appear solely in the FCA’s Handbook. A limited number (including the definition of a ‘with-profits fund’) also appear in the PRA Rulebook since they embody prudential matters relevant to the PRA’s objectives. 

3.3

In view of the different objectives and responsibilities of the FCA and PRA, the two regulators have published separate statements in response to the CP12/38 consultation. The advantages of this approach are that it:

• provides clarity for industry regarding the split of responsibilities pertaining to the provisions arising out of CP12/38; and
• allows each regulator to answer questions addressed to its areas of responsibility, referencing its specific objectives.

3.4

CP12/38 proposed some changes to COBS 20 guidance which is now solely in the FCA Handbook. This has been addressed in the FCA’s Policy Statement 14/5 on CP12/38. The FCA’s Policy Statement also contains information about the responses received to CP12/38 and to which readers are referred for further information.^[4]