The PRA published the supervisory statement SS 2/24 in March 2024 where it set out the new rules and expectations for non-systemic banks and building societies. The proposed Solvent Exit exercise expects the firms in scope to make preparations for ‘Solvent Exit’ as part of their BAU activities. The crux of the regulation is: orderly wind down after returning or transferring deposits and cancellation of the Part 4A PRA permission.

Valentia Partners evaluates the challenges associated with implementing the Trading Activity Wind Down (TWD) requirements outlined in the PRA’s Supervisory Statement SS1/22 of May 2022, with a focus on meeting the regulation deadline of March 2025. We also explore enhancements for any potential post-implementation Book of Work (BoW); and suggest areas where regulatory forbearance from the PRA could be sought.