Strong and Simple regime
The PRA is expected to introduce a more proportionate prudential regime for less systemically important banks and building societies. This will be known as the ‘Strong and Simple’ regime.
Key observations on PRA’s Strong and Simple policy statement (PS15/23)
IndustriesFinancial ServicesBanking & Capital MarketsRegulatory ComplianceStrong and Simple regime
Key observations on PRA’s policy statement
The Policy Statement (PS 15/23) is the long-awaited, finalised version of the criteria for entry, disclosure and liquidity requirements for the Strong and Simple regime. We have outlined the key points from this policy statement for firms.
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What does this mean for firms?For eligible firms who are undecided about whether to follow Basel 3.1 or the Strong and Simple regime, it is advisable to wait until the PRA publishes concrete capital guidance for SDDTs before making a final decision. The PRA has stated that SDDT firms that want to wait for the capital proposals to be finalised can opt-in later, allowing them this degree of flexibility. |
If you require any assistance, or have any questions, about responding to requirements with the Strong and Simple Regime, please get in contact with the individuals below.
Strong and Simple – Does this apply to your firm?
The Strong and Simple regime could present potential advantages to firms, including cost reductions and increased competitiveness due to more proportionate regulatory requirements. This article aims to provide a clear understanding of which firms could be eligible for the new regime following PRA consultation (as of Q2 2023).
National contact
Freddie Blake Associate Director – Financial Services Consulting London
