The UK Prudential Regulation Authority (PRA) has written to the Prime Minister with an update on its work to support economic growth, reporting that four of the five regulatory changes it previously committed to have been completed and that the first step has been delivered on a fifth initiative to simplify banks’ regulatory data reporting. Completed actions include implementing the “Strong and Simple” capital framework for smaller, UK-focused lenders, launching the Matching Adjustment Investment Accelerator to speed insurers’ ability to recognise capital benefits from eligible investments, and reforms to the Insurance Special Purpose Vehicle framework that broaden transaction scope and reduce authorisation timelines to around 10 working days. The PRA also amended banking remuneration rules by halving the minimum bonus deferral period for senior bankers to four years with immediate effect and introducing greater flexibility in pay structuring while retaining accountability. On data reporting, the Future Banking Data programme has delivered an initial stage of reporting reductions in December, with expected annual cost savings of around GBP 26 million and contributions to around GBP 100 million of reporting reductions the PRA has proposed or implemented. On joint proposals with HM Treasury and the Department for Business and Trade, the PRA noted that an inward investment “concierge service” is operating from the Office for Investment with PRA staff involvement, HM Treasury has published a proposal to rationalise the PRA’s “have regards”, and the PRA has paused rules that would overlap with intended legislation while seeking further opportunities to reduce duplication. The letter also points to ongoing work under the Chancellor’s Leeds Reforms, including finalising Basel 3.1, changes to the Senior Managers & Certification Regime, new authorisations targets, a more efficient models approval process, a new regime for insurance captives, and a unit to support fast-growing innovative firms, alongside PRA support for forthcoming reviews flagged by the Bank’s Financial Policy Committee.
Prudential Regulation Authority 2025-12-09
UK Prudential Regulation Authority tells the Prime Minister four of five growth-focused regulatory changes are complete
The UK Prudential Regulation Authority has written to the Prime Minister on its growth agenda, confirming completion of four of five pledged regulatory changes and initial simplification of banks’ regulatory data reporting. Key measures include the “Strong and Simple” capital framework for smaller lenders, the Matching Adjustment Investment Accelerator, reforms to the Insurance Special Purpose Vehicle framework, changes to banking remuneration rules, and early reporting reductions under the Future Banking Data programme. The letter also highlights joint work with HM Treasury and the Department for Business and Trade on inward investment and rationalising the PRA’s “have regards”, plus ongoing initiatives under the Chancellor’s Leeds Reforms.