UK Prudential Regulation Authority responds to Government on enhancing sustainable economic growth

The Prudential Regulation Authority has published a letter (dated January 15, 2025) from Sam Woods, PRA Deputy Governor and CEO, to the Government setting out the actions the PRA has taken, and will take, with a view to enhancing economic growth. Actions already addressed by the PRA include:

• simplifying the prudential regime for small banks;
• proposing further amendments to remuneration requirements to enhance competitiveness; and
• simplifying regulatory data-reporting from banks.

The PRA also considers that broader changes could simplify and rationalize the U.K. regulatory regime in other ways, such as identifying potential overlaps between PRA's governance and disclosure requirements and those of legislation or other regulators. In the PRA's view, rationalizing the U.K. financial services regulators' "have regards" principles could lead to a simplification of the length and complexity of the analysis underpinning new regulations with consequential benefits for the cost of regulatory engagement by firms and efficient use of resources by the PRA. The principles relate to the number of principles regulators are required to "have regard" to and to which they are held to account for when exercising their powers.

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