PRA clarifies its approach to authorising and supervising third-country branches

The PRA published CP21/23 on 4 October 2023, clarifying and setting out details on its authorisation and supervisory expectations for third-country branches (TCBs). The PRA proposes to issue a new statement of policy to replace SS2/18, which will clarify the PRA’s approach to assessing the risks of a TCB. This among other things includes assessing the home jurisdiction’s supervision regime and the reinsurance arrangements of a parent undertaking. The PRA also proposes to update SS44/15 to clarify its expectations in areas such as notifications, senior manager functions and ORSA reporting. The PRA confirms its substantive approach to TCBs remains materially unchanged.

Download this At a glance to see our summary of the PRA’s consultation on authorising and supervising third-country branches and what it means for international firms and their branches.