3.1 In carrying out its policy making functions, the PRA is required to comply with several legal obligations. 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:

- a cost benefit analysis;

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

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

- impact on mutuals: a statement as to whether the impact of the proposed policy will be significantly different to mutuals than to other persons [Section 138K of FSMA.];