Appendix 12.

Abstract

In making the rules in this PS, the PRA has considered its primary objective to promote safety and soundness and its secondary objective to facilitate effective competition (sections 2B and 2H(1) of FSMA) and has had regard to all the FSMA regulatory principles (sections 2H(2) and 3B of FSMA) and the HM Treasury recommendation letter. The PRA has also taken into account the new matters for CRR rules set out in section 144C of FSMA (added by the FS Act), other than the carbon target, which the PRA is only required to consider for rules made from 1 January 2022 (paragraph 25 of Schedule 3 of the FS Act). The analysis below does not set out every one of these considerations, but instead selects the areas where the impact of these considerations was most directly relevant to the development of the final rules, and summarises how the rules are compatible with these considerations and how they affected the rules. This is largely based on the analysis previously published as part of CP5/21, updated to reflect additional considerations arising from responses to that CP. Where this document refers to changes, these are compared to the currently applicable requirements.