The Prudential Regulation Authority (PRA) is a key financial regulator in the UK, responsible for ensuring the stability, resilience, and soundness of banks, insurers, and large investment firms. It operates under the Bank of England and works alongside the Financial Conduct Authority (FCA) to maintain financial market integrity.

At Cifa.ac, we provide comprehensive insights and training on PRA financial regulations, helping firms navigate compliance requirements effectively.

1. What is the PRA?
The Prudential Regulation Authority (PRA) was established in 2013 as part of the Bank of England. Its primary objectives include:

Ensuring financial stability – Preventing systemic risks and financial crises.
Supervising major financial institutions – Banks, insurers, and large investment firms.
Protecting policyholders – Ensuring the security of insurance companies.
Promoting competitive and effective financial markets.

The PRA focuses on the financial health and risk management of firms, while the FCA oversees consumer protection and conduct standards.

2. Key PRA Regulatory Frameworks
Capital & Liquidity Requirements (Basel III & UK CRR)
UK banks and investment firms must meet capital adequacy and liquidity coverage ratios.
PRA enforces Basel III standards to prevent financial instability.
Capital Buffers & Stress Testing ensure institutions can absorb financial shocks.
Solvency II for Insurance Firms
Requires insurers to hold sufficient capital reserves.
Focuses on risk assessment and governance.
Ensures that policyholder interests are protected.
Senior Managers & Certification Regime (SMCR)
Holds senior executives accountable for regulatory breaches.
Requires firms to define clear governance structures.
Ensures ethical leadership and risk management.
Risk Management & Operational Resilience
Firms must have robust risk management frameworks.
PRA mandates cybersecurity, fraud prevention, and contingency planning.
Focus on business continuity and financial system resilience.
3. How PRA Regulations Impact Financial Institutions
Banks & Investment Firms – Must comply with Basel III capital and liquidity requirements.
Insurance Companies – Must adhere to Solvency II capital and risk standards.
Financial Executives – Are accountable under the SMCR framework.
Firms Handling Client Funds – Need PRA-approved risk management systems.
https://cifa.ac/home/bundle/Introduction-to-the-FCAPRA-Investment-Risks/8

STATE HOUSE PRESS RELEASE

PRESIDENT TINUBU ARRIVES INDIA AND HEADS STRAIGHT INTO TOP-LEVEL INVESTMENT MEETING WITH HINDUJA CHAIRMAN AFTER 15 HOUR JOURNEY

Undeterred by jetlag from a long intercontinental journey, President Bola Tinubu, on Tuesday, arrived in New Delhi to the immediate embrace of Mr. Gopichand Hinduja, the Chairman and CEO of the Hinduja Group of Companies, a conglomerate with a total asset portfolio exceeding $100 billion U.S. Dollars.

The Indian Industrialist was received by the President within 90 minutes of the President’s arrival in India for a meeting, which began around 8:00pm local time.

Accompanied to the meeting by Nigeria’s Ministers of Finance, Trade & Industry, and Foreign Affairs, the smiling Nigerian leader made it clear to his first visitor that he is in India with one focus: attracting investments to Nigeria with lucrative opportunities for investors, but most essentially, jobs for Nigerians and new revenue opportunities for Nigeria’s federal and sub-national governments.

“We are here for business. I am here to personally assure our friends and investors that there is no bottleneck that I will not break. Nigeria will become one of the most conducive places on earth to make good profits and create lasting jobs. With my support, there is nothing standing in your way of enjoying the unrivaled opportunities presented by our massive market and the ingenious & hardworking nature of the Nigerian people. We are open for business,” the President firmly assured.

The Hinduja Group Chairman told the President that he was a living witness to his landmark effort as Governor of Lagos in turning a coastal erosion and water encroachment crisis into a massive free trade zone where industry now thrives. This, he said, was partially responsible for his excitement to partner with Nigeria’s new President to create win-win prosperity for Nigeria’s talented population.

“We believe in you as a leader who has done this before. You know what the challenges are. You know how to fix them. We are going to make investments into the billions of dollars under your leadership, because we see you are already addressing the systemic problems. I am ready now to sign an MoU and to begin execution. You tell me who to liase with and we will get to work immediately, particularly with respect to bus and automobile manufacturing in Nigeria, amongst other areas,” the Industrialist enthusiastically stated.

The President did not wait to respond.

“Ministers of Trade and Finance, the two of you will follow this up immediately and you will draw up the terms to the satisfaction of both parties. If there are any issues at all which require my intervention, they must be brought to my attention immediately.”

After the President assigned the task of concluding the agreement to the two Ministers in collaboration with with Hinduja Group Executives, who were present in the room, the industrialist could not hide his excitement.

“I have had paperwork stalled in Nigerian bureaucracy for over one year, especially in FCT, but I knew that you would be purpose driven in this endeavour and God will help you to turn Nigeria’s rich promise into rich reality for all of its citizens,” the Indian Billionaire concluded.

The President concluded that his task of making Nigeria great can only be achieved through teamwork and not in isolation, noting that when his investors are happy, Nigerians will rejoice by partaking in an inclusive economy where hard work is rewarded and where excellence becomes the reputation of the nation.


Chief Ajuri Ngelale
Special Adviser to the President
(Media & Publicity)
September 5, 2023