3.1 In carrying out its policy making functions, the PRA is required to comply with several legal obligations. The PRA has a statutory duty to consult when introducing new rules (FSMA s138J) or new standards instruments (FSMA s138S). When not making rules, the PRA has a public law duty to consult widely where it would be fair to do so

3.2 The PRA fulfils its statutory obligations and public law duties by providing the following in relation to the proposed policy:

(i) a cost benefit analysis;

(ii) compatibility with the PRA's objectives: an explanation of the PRA's reasons for considering that making the proposed rules is compatible with the PRA's duty to act in a way that advances its general objective [Section 2B of FSMA.], insurance objective [Section 2C of FSMA.] (if applicable), and secondary competition objective [Section 2H(1) of FSMA.];

(iii) FSMA regulatory principles: an explanation of the ways in which having regard to the regulatory principles has affected the proposed rules [Sections 2H(2) and 3B of FSMA.];