What do the Prudential Regulation Authority's threshold conditions require authorised firms to have?

The Prudential Regulation Authority (PRA) sets out threshold conditions that firms must meet to be authorised. One of the key requirements is that firms should maintain adequate financial resources, which ensures they have enough capital to meet their obligations and support their risk exposure.

In addition to financial resources, firms must also be appropriately staffed. This involves not only having enough personnel but ensuring that the staff possess the necessary skills and experience to manage the firm's operations effectively. The requirement for effective supervision highlights the need for robust governance structures and oversight mechanisms to prevent risks and ensure compliance with regulatory expectations.

When considering the broader context of the PRA's framework, it becomes evident that adequate financial resources and appropriate staffing are essential elements, complemented by effective supervision to ensure sound operational management and risk mitigation practices. This comprehensive approach helps maintain the stability and resilience of the financial system as a whole.