1.1 This supervisory statement is of interest to banks, building societies and Prudential Regulation Authority (PRA) designated investment firms. It sets out the PRA's expectations of firms and provides further clarity on Pillar 2 reporting [This supervisory statement was previously updated in 2016 and 2017. See the annex for details.].

1.2 This supervisory statement should be read alongside the Policy Statement 17/15 [Supervisory Statement SS31/15, 'The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP)', February 2017.], which includes the Reporting Pillar 2 part of the PRA Rulebook, and the Statement of Policy on Pillar 2.

1.3 The reader is also referred to:

• Appendix 1: Guidance on terms used in data items FSA071 to FSA082, and PRA111;

• Appendix 2: Pillar 2 Reporting schedule; and

• Appendix 3: Instructions for completing data items FSA071 to FSA082, and PRA111.