UK PRA letter provides progress update on economic objectives to Prime Minister

The UK Prudential Regulatory Authority (PRA) has sent a letter to the Prime Minister providing an update on measures taken to align regulation with its economic growth objectives. The PRA confirms completion of four out of five key actions announced last year, including: (i) implementing the "strong and simple" capital framework for smaller banks to reduce compliance costs; (ii) launching the matching adjustment investment accelerator to boost insurers' UK investments; (iii) improving the insurance special purpose vehicle (ISPV) regime to accelerate authorisations and attract capital; and (iv) amending remuneration rules by halving the minimum bonus deferral periods for senior bankers. The fifth initiative, simplifying regulatory data reporting, has begun through the future banking data programme, with further development and prioritisation of this programme, and additional cost reductions to follow. Additional progress includes establishing a concierge service for inward investment, rationalising the PRA's "have regards" framework and reducing legislative overlap. Further reforms under the Leeds package, such as Basel 3.1 implementation and Senior Managers Regime simplification, are ongoing to enhance competitiveness and support growth.

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