Sam Woods, the PRA’s CEO, has published a letter seeking contingency plans from firms in light of the UK’s impending withdrawal from the EU. The letter is relevant to banks, insurers and designated investment firms undertaking cross-border activities between the UK and the rest of the EU.
PRA expects firms to prepare and execute in good time contingency plans for a range of potential outcomes such that the safety and soundness of their UK operation is assured and the risk of any adverse financial stability impacts on the UK economy is mitigated.
PRA requests :
- written confirmation that the board/ local branch senior management has considered its contingency plans around UK withdrawal;
- a short summary of those plans (including if it involves business restructuring or a Part VII transfer); and
- assurance that those plans address appropriately a wide range of scenarios.
PRA seeks full responses by 14 July 2017.