Following its consultation earlier this year on its expectations on recovery planning, the Prudential Regulation Authority has published a Policy Statement which sets out the PRA's final revised expectations on the content of recovery plans and the approach to recovery planning for groups which include a ring-fenced body. Alongside the Policy Statement, the PRA has published a new Supervisory Statement on recovery planning and an updated Supervisory Statement on RFBs. The PRA decided to publish the new Supervisory Statement because its experience in assessing firm's plans showed that there was a need to improve the quality of recovery plans and to increase the prospect of plans being credible. The new Supervisory Statement on recovery planning therefore supersedes the previous one, SS-18/13.

The PRA expects firms to meet certain of its expectations by June 30, 2019. These are the expectations on the full separability analysis for disposal options, modelling of capital and liquidity profiles in each scenario, full analysis of funding needs by currency in each scenario and the integration of liquidity contingency plans. The remainder of the expectations in the new Supervisory Statement on recovery planning should be met by June 30, 2018 or by the firm's first annual update of their recovery plan, whichever is the later. The PRA has stated that it will host workshops for firms in the first half of 2018 on its revised expectations.