PRA publishes feedback on UK prudential framework

The PRA has published a feedback statement summarising the responses to Discussion Paper (DP) 1/21, which set out the PRA’s proposals for developing a simpler prudential framework for non-systemic banks and building societies. The majority of respondents supported:

• the long-term vision for a simpler prudential framework that would be comprised of a number of layered prudential regimes;
• the concept that firms in scope of the simpler regime could choose to operate under the prudential rules for larger firms instead; and
• a “streamlined” approach to designing the new prudential requirements.

The PRA intends to publish consultation papers on the new framework in 2022 and/or 2023.