Strategic Shareholder Climate and Risk Financial Financial Barclays PLC 370 report information sustainability report Governance review review statements Annual Report 2022 Supervision and regulation Barclays Capital Securities Limited is current indications, it is not expected to Supervision of the Group authorised and subject to prudential result in a materially different standard of The Group’s operations, including its regulation with respect to PRA and FCA supervision by the PRA as a PRA- overseas branches, subsidiaries and designated investment firm and subject to standards. The medium term outlook for associates, are subject to a large number conduct regulation and supervision by the the costs and impact of operating under of rules and regulations applicable to the FCA. Barclays Execution Services Limited the post-Brexit UK regime remains unclear conduct of banking and financial services is an appointed representative of Barclays until details of any changes are confirmed. business in each of the jurisdictions in There is potential for an increase in Bank PLC, Barclays Bank UK PLC and which the Group operates. These apply to Clydesdale Financial Services Limited. regulatory implementation costs in the business operations, impact financial near term to adapt systems and controls. The PRA’s supervision of the Group is returns and include capital, leverage and conducted through a variety of regulatory Both the PRA and the FCA have assessed liquidity requirements, authorisation, the impact of COVID-19 and Brexit on UK tools, including the collection of registration and reporting requirements, financial markets and customers as well as information by way of prudential returns or restrictions on certain activities, conduct the orderly transition away from LIBOR cross-firm reviews, reports obtained from of business regulations and many others. and have issued guidance for regulated skilled persons, regular supervisory visits to Regulatory developments impact the entities accordingly. In each case, the firms and regular meetings with Group globally. We focus particularly on guidance focussed on customer / client management and directors to discuss UK, US and EU regulation due to the outcomes and conduct risk, as well as issues such as strategy, governance, location of the Group’s principal areas of ensuring fair and orderly markets . financial resilience, operational resilience, business. Regulations elsewhere may also Supervision in the EU risk management, and recovery and have a significant impact on the Group due The Group’s operations in Europe are resolution. to the location of its branches, subsidiaries authorised and regulated by a combination Further, the BoE, as the UK resolution and, in some cases, clients. For more of its home regulators and host regulators authority, informs prudential requirements information on the risks related to the in the European countries where the and sets requirements for the Group supervision and regulation of the Group, Group operates. relating to resolution preparedness. including regulatory change, see the Barclays Bank Ireland PLC is licensed as a material existing and emerging risk entitled The FCA’s supervision of the UK firms in credit institution by the Central Bank of ‘Regulatory Change agenda and impact on the Group is carried out through a Ireland (CBI) and is designated as a Business Model’ in the Material existing and combination of proactive engagement, significant institution falling under direct emerging risks section. regular thematic work and project work supervision on a solo basis by the based on the FCA’s sector assessments, Supervision in the UK European Central Bank (ECB) for which analyse the different areas of the In the UK, day-to-day regulation and prudential purposes. Barclays Bank Ireland market and the risks that may lie ahead. supervision of the Group is divided PLC’s EU branches are supervised by the The FCA and the PRA also apply the Senior between the Prudential Regulation ECB and are also subject to direct Managers and Certification Regime (the Authority (PRA) (a division of the Bank of supervision for local conduct purposes by SMCR) which imposes a regulatory England (BoE)) and the Financial Conduct national supervisory authorities in the approval, individual accountability and Authority (FCA). In addition, the Financial jurisdictions where they are established. fitness and propriety framework in respect Policy Committee (FPC) of the BoE has Barclays Bank Ireland PLC is subject to the of senior or key individuals within relevant influence on the prudential requirements requirements set by the Single Resolution firms. that may be imposed on the banking Board (SRB) as the host resolution system through its powers of direction and authority of Barclays Bank Ireland PLC. FCA supervision has focused on conduct recommendation. Certain members of the Barclays Bank Ireland PLC is also subject to risk and customer/client outcomes, Group are also subject to regulatory supervision by the CBI as home state or including product design, customer initiatives undertaken by the UK Payment competent authority under various EU behaviour, market operations, fair pricing, Systems Regulator (PSR), as a participant financial services directives and affordability, access to cash, and fair in payment systems regulated by the PSR. regulations. treatment of vulnerable customers. Barclays Bank PLC and Barclays Bank UK The Group provides the majority of its PRA supervision has focused on financial PLC are authorised with permission to cross-border banking and investment resilience, credit risk management, Board accept deposits, amongst other things, services to EEA clients via Barclays Bank effectiveness, operational resilience, and subject to prudential supervision by Ireland PLC. Additionally, in certain EEA climate risk and resolvability, where the PRA and subject to conduct regulation Member States, Barclays Bank PLC and resolvability is reviewed in conjunction with and supervision by the FCA. The Barclays Barclays Capital Securities Limited (BCSL) the Resolution Directorate (a separate Bank Group is subject to prudential have cross-border licences to enable them division of the BoE). supervision on a solo-consolidated basis to continue to conduct a limited range of Both the PRA and the FCA apply standards and the Barclays Bank UK Group is subject activities, including accessing EEA trading that generally either anticipate or go to prudential supervision on a group venues and interdealer trading. Barclays beyond requirements established by global consolidated basis and on an individual Bank PLC also has a Paris branch (to or EU standards, whether in relation to basis. The Group is also subject to facilitate access to Target 2), which is capital, leverage and liquidity, resolvability prudential supervision by the PRA on a regulated by the ACPR. and resolution or matters of conduct. The group consolidated basis. Barclays PLC UK is in the process of reviewing and has been approved by the PRA as a revising the EU legislation that was financial holding company. onshored into English law following the UK's departure from the EU. This process is at a very early stage, but based on