Dear CEO, Are Your Regulatory Returns Reliable?

Welcome to our discussion on the UK Prudential Regulation Authority’s Dear CEO letter regarding the reliability of regulatory returns. Catherine Claxton, Senior Executive at Monocle, explains what a Dear CEO letter is, how banks in the UK need to prepare for the requirements set out in this particular letter and what the digital landscape of regulatory returns may look like.

Reporting, specifically regulatory returns, has become the mechanism to reduce the asymmetric balance of information and insight into a business’s operations and financial performance. Supervisory and regulatory organisations rely on this reporting to monitor and oversee a firm’s performance and stability.

However, unreliability of reporting undermines strong regulatory governance and has become a concern for the Prudential Regulation Authority. In their letter to bank CEOs, the PRA reinforces the importance of data integrity, with a call for banks to submit reports that are complete, timely and accurate.