PRA announces interim rules on regulatory references

The PRA has announced that it will be introducing interim rules on regulatory references which will apply from 7 March 2016. These will be followed by final rules later this year. 

The delay is due to a number of complex issues which were raised in the response to its joint consultation with the FCA, which the PRA and FCA wish to consider further before coming up with final rules. 

The announcement follows a similar announcement by the FCA earlier this month. 

From 7 March 2016, a PRA-regulated firm employing an in-scope individual (senior managers, notified non-executive directors, key function holders at insurers, and employees subject to certification under the PRA’s certification rules) will have to:

• provide a reference to another regulated firm ‘as soon as reasonably practicable’ upon request containing ‘all relevant information’ of which it is aware; 
• take reasonable steps to obtain appropriate references covering at least the past 5 years of service from that person’s current and previous employers, and from organisations at which that person served as, or is currently, a non-executive director. 

The interim rules do not include a requirement for regulatory references to be provided in a standard template; nor for these references to be updated if subsequent information about the individual’s conduct or fitness and propriety subsequently comes to light. These provisions are expected to be in the final rules.