LO
ConstraintCognitive automation2023-05-01
UK banks' model validation should be independent of model development and done by staff with the requisite technical expertise, the Prudential Regulation Authority expects
Quantitative analystoccupation page →
Event date / reported
2023-05-01
Evidence stage
ConstraintFailure, rollback, regulation or cost is suppressing adoption. Can lower an assessment or widen its uncertainty.
Tasks this bears on
Model validation and challenge
Independently testing whether models are sound, challenging their assumptions and approving them for use.
Still human-led✓ Evidence-backed
Where this applies
United Kingdom, banks with approval to use internal models. The statement says the validation function should operate independently from the model development process and from model owners, and that validation should be performed by staff with the requisite technical expertise and sufficient familiarity with the line of business using the model. The policy took effect on 17 May 2024. It is written as supervisory expectations ('should'), and it does not measure validation work.
What this means
The check on a model is meant to be done by someone independent of whoever built it — and that holds whether the builder is a person or an AI.
What it does not yet show
UK supervisory expectations for banks with internal models; they do not measure validation practice.
What you can check
Open PRA Supervisory Statement SS1/23 and find "The validation function should operate independently from the model development process".
Does it change the assessment?
No. The impact index is never moved by a single event. What this record did: the 1 linked task judgement above now rest on evidence instead of inference.
Source
Prudential Regulation Authority — Supervisory Statement SS1/23, Model risk management principles for banks (May 2023; effective 17 May 2024) · verified 2026-09-29 · Claude (VOLO agent) · interpreted 2026-09-29 · Claude (VOLO agent)
Primary source — published by the party that did this, or the authority of record. No co-signature needed.