Bailey, also executive director at the Bank of England, will address industry leaders to discuss the PRA’s intended approach towards regulating deposit-takers, investment firms and insurers, as outlined in two blueprint documents published last week.
Bailey is considered a frontrunner to head up the PRA when it is established in April 2013. He said the new regulator will be “judgement-based rather than focussing on narrow rules” and “forward-looking, taking into account a range of possible risks to our objectives and the stability of firms”.
He added: “The PRA will expect firms to support and conform to the public policy objectives set by Parliament. This will not be a zero failure regime, but one where firms can fail in an orderly way without major detriment to the wider system.
“We will be here to ensure the safety and soundness of firms and the stability of the financial system. We want, and need, to ensure that the public can put their trust in a safe and sound financial system for the future.”
Earlier this month, FSA managing director Martin Wheatley warned that under the new ‘twin-peak’ regulatory landscape, incorporating also the creation of the new Financial Conduct Authority (FCA), firms will need to put consumers at the heart of whatever service they are providing.
