[author: Rebecca Cousins]

The U.K. Prudential Regulation Authority (PRA) has issued a policy statement on the internal governance arrangements of U.K. branches of non-EEA banks and PRA designated investment firms, known as “third country branches.”

The rules and supervisory statement cover general organizational requirements; persons who effectively direct the business; responsibility of senior personnel; skills, knowledge and expertise; compliance and internal audit; risk control; outsourcing; and record keeping. These rules replace the rules and guidance in chapters 4 to 9, and 21, of the Senior Management Arrangements, Systems and Controls section of the PRA Handbook. The rules will come into effect on 7 March 2016. Press release.