PRA sets out proposals for a definition of a ‘Simpler-regime Firm’

PRA has issued a consultation paper to define a ‘Simpler-regime Firm‘, as a first step towards designing a strong and simple framework.

A Simpler-regime Firm would be subject to a simpler, but robust, set of prudential rules in the future. That regime would advance the PRA’s safety and soundness, and secondary competition objectives. PRA considers that publishing the proposed definition also provides the benefit of giving firms early visibility of a key building block of the future simpler regime. PRA considers the introduction of the Simpler-regime Firm definition should not create significant additional costs because the criteria in the definition should be based on information that firms are already having to calculate or required to report. PRA considers its proposals to be a necessary and appropriate step towards the introduction of future measures to enhance the proportionality of the PRA’s regulatory framework, while maintaining firms’ safety and soundness.

The consultation closes on 22 July 2022.

Harshil Patel