UK PRA consults on removing the continuity of provision of services rules for RFBs

The UK Prudential Regulation Authority (PRA) has published consultation paper CP10/26 proposing to remove the "continuity of provision of services" requirements, Rule 9 of the Ring-fenced Bodies Part of the PRA Rulebook for ring-fenced banks (RFBs). The PRA also makes certain consequential changes and amends associated material in Chapter 8 of supervisory statement SS8/16.

The shared services rules are intended to ensure that RFBs remain operationally independent and can continue their core activities regardless of the financial position of other group entities. Some requirements also apply to third-party service providers, ensuring that service arrangements are protected from the actions of other group members. However, the PRA states that since the rules were introduced, other frameworks, particularly the Operational Continuity in Resolution regime, have developed and now achieve similar objectives in a more flexible way. Therefore, these rules should be deleted.

The deadline for responses is 14 October, with final rules expected in 2027. In parallel, HM Treasury has published a consultation on its ring-fencing reform package.

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