The Prudential Regulation Authority has published an updated statement of policy setting out its approach to cost benefit analysis, superseding the version first issued in December 2024. The update incorporates feedback from the Cost Benefit Analysis Panel and from the public, and the PRA describes cost benefit analysis as a core part of policymaking that supports transparency, accountability and better policy design. The PRA received one response to its feedback request, from the Association of British Insurers. A separate Bank approach to cost benefit analysis has also been published, covering how cost benefit analysis will be conducted for rules relating to financial market infrastructure regulation.
Prudential Regulation Authority 2026-04-29
Prudential Regulation Authority updates its approach to cost benefit analysis after public feedback
The Prudential Regulation Authority has updated its statement of policy on cost benefit analysis, incorporating feedback from the Cost Benefit Analysis Panel, the public and the Association of British Insurers, and superseding the December 2024 version. The PRA reiterates that cost benefit analysis is a core element of policymaking to support transparency, accountability and better policy design, and notes that the Bank of England has separately published its approach for financial market infrastructure rules.