3.1 The PRA has a statutory duty to consult when introducing new rules and, when not making rules, has a public law duty to consult widely where it would be fair to do so. When doing so, the PRA provides the following in relation to the proposed policy:

• a cost benefit analysis;

• an explanation of the PRA’s reasons for believing that making the proposed policy is compatible with the PRA’s duty to act in a way that advances its general objective, insurance objective (if applicable), and secondary competition objective;

• an explanation of the PRA’s reasons for believing that making the proposed policy is compatible with its duty to have regard to the regulatory principles; and

• a statement as to whether the impact of the proposed policy will be significantly different to mutuals than to other persons.

3.2 The Prudential Regulation Committee (PRC) should have regard to aspects of the Government’s economic policy as recommended by HM Treasury. [Section 30B of the Bank of England Act 1998.]

3.3 The PRA is also required by the Equality Act 2010 [Section 149.] to have due regard to the need to eliminate discrimination and to promote equality of opportunity in carrying out its policies, services and functions.

Cost benefit analysis