1.18 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.

1.19 The proposals set out in this CP have been developed by the PRA in accordance with its statutory objectives and informed by the regulatory principles and the matters to which it must have regard in making policy as set out in the Financial Services and Markets Act 2000 (FSMA). Appendix 6 lists the statutory obligations applicable to the PRA's policy development process. Where the rules proposed are Capital Requirements Regulation (CRR) rules, the analysis in this CP sets out how the matters to which it must have regard when making CRR rules have affected the proposals.