2BThe pra's general objective
(1)In discharging its general functions the PRA must, so far as is reasonably possible, act in a way which advances its general objective.
(2)The PRA's general objective is: promoting the safety and soundness of PRA-authorised persons.
(3)That objective is to be advanced primarily by— (a)seeking to ensure that the business of PRA-authorised persons is carried on in a way which avoids any adverse effect on the stability of the UK financial system, and (b)seeking to minimise the adverse effect that the failure of a PRA-authorised person could be expected to have on the stability of the UK financial system.
(4)The adverse effects mentioned in subsection (3) may, in particular, result from the disruption of the continuity of financial services. (5)In this Act “PRA-authorised person” means an authorised person who has permission— (a)given under Part 4A, or (b)resulting from any other provision of this Act,to carry on regulated
activities that consist of or include one or more PRA-regulated activities (see section 22A).
(6)Subsection (1) is subject to sections 2C and 2D
2C Insurance objective
(1)In discharging its general functions so far as relating to a PRA-regulated activity relating to the effecting or carrying out of contracts of insurance or PRA-authorised persons carrying on that activity, the PRA must, so far as is reasonably possible, act in a way— (a)which is compatible with its general objective and its insurance objective, and (b)which the PRA considers most appropriate for the purpose of advancing those objectives.
(2)The PRA's insurance objective is: contributing to the securing of an appropriate degree of protection for those who are or may become policyholders.
(3)This section applies only if the effecting or carrying out of contracts of insurance as principal is to any extent a PRA-regulated activity.
2DPower to provide for additional objectives
(1)Subsection (2) applies to an order under section 22A which— (a)is made at any time after the coming into force of the first order under that section, and (b)contains a statement by the Treasury that, in their opinion, the effect
(or one of the effects) of the proposed order is that an activity would become a PRA-regulated activity.
(2)An order to which this subsection applies may specify an additional objective (“the specified objective”) in relation to specified activities that become PRA-regulated activities by virtue of the order (“the additional activities”).
(3)In discharging its general functions so far as relating to the additional activities or PRA-authorised persons carrying on those activities, the PRA must, so far as is reasonably possible, act in a way— (a)which is compatible with its general objective and the specified objective, and (b)which the PRA considers most appropriate for the purpose of advancing those objectives.