PRA publishes simpler-regime firms policy statement

The BoE has published its Policy statement: The Strong and Simple Framework: Scope Criteria, Liquidity and Disclosure Requirements (PS15/23) (5 December 2023) incorporating feedback from consultations regarding liquidity and disclosure requirements for Simpler-regime Firms (CP 4/23), now renamed Small Domestic Deposit Takers (SDDTs), and Pillar 3 remuneration disclosure (CP 14/23).

The policy statement outlines finalised policies including amendments to PRA Rulebooks, updated supervisory statements, and new statements of policy. SDDTs will adhere to revised criteria focusing on size, domestic activity, limited trading, and exclusions from certain services, aiming for a more straightforward prudential framework.

Responses from consultations generally supported the proposals, leading to adjustments in criteria and implementation timelines. The PRA aims to establish a simpler regime for smaller UK banks and building societies, intending further consultations on Pillar 2 and buffer requirements for SDDTs in the future, aligning with regulatory objectives and facilitating a transaction effective from January and July 2024 for different rule components.

FIN. Team