UK HM Treasury published the record of the Economic Secretary to the Treasury’s first formal performance review meeting with the Prudential Regulation Authority (PRA) Chief Executive, held on 17 July 2025, following the government’s commitment in the Regulation Action Plan to formalise sponsor department reviews of regulators. The minutes cover the PRA’s performance against its statutory objectives and alignment with the government’s economic policy, including how it is embedding its secondary international competitiveness and growth objective. The record notes progress and planned activity linked to that objective, including implementation work on Basel 3.1 with adjustments intended to support small and medium-sized enterprise and infrastructure financing and trade finance, remuneration reforms, and reductions in supervisory reporting requirements, including the removal of a third of reporting requirements for insurers and further planned reductions for banks. It also highlights delivery of Solvency II reforms (Solvency UK), including changes to matching adjustment eligibility criteria and proposals for a Matching Adjustment Investment Accelerator, as well as proposed reforms to the Senior Managers and Certification Regime aimed at reducing burdens without increasing risks to financial stability. Other topics included planned joint work with HM Treasury on reviewing the ring-fencing regime, potential PRA contributions to the Financial Policy Committee’s review of capital needed for UK financial stability, the government’s intention to require the PRA to set out a long-term strategy for advancing its objectives, and work towards the government’s target to reduce administrative costs for businesses by 25% by the end of the Parliament. Next steps referenced in the minutes include launching a new Scale-Up Unit with the Financial Conduct Authority, enhancing approval processes for internal models for credit risk, and continued engagement with firms on applications for matching adjustment permissions under Solvency UK.
HM Treasury 2025-10-09
UK HM Treasury publishes minutes of its first formal performance review meeting with the Prudential Regulation Authority
UK HM Treasury published the record of the Economic Secretary's first performance review with the Prudential Regulation Authority (PRA) Chief Executive, focusing on the PRA's alignment with statutory objectives and government economic policy. Key topics included Basel 3.1 implementation, Solvency II reforms, and proposed changes to the Senior Managers and Certification Regime. The review also covered joint work on the ring-fencing regime and efforts to cut business administrative costs by 25% by the end of the Parliament.