PRA updates on Strong and Simple Framework

The PRA published a policy statement setting out the final rules for the criteria, liquidity and disclosure elements of the ‘Strong and Simple Framework’ on 5 December 2023.

The rules are largely aligned with the proposals contained in several previous consultation papers (CP4/23, CP14/23, CP16/22 and CP5/22).

The framework establishes criteria and operational guidelines for Small Domestic Deposit Takers (SDDTs) and SDDTs consolidation entities.

SDDT definition and eligibility rules, along with disclosure requirements, become effective on 1 January 2024. Other related rules will be implemented on 1 July 2024. The PRA is allowing firms the flexibility of waiting until further elements of the regime, notably the capital requirements, are finalised before deciding whether to opt in.

Read PwC’s analysis and what it means for firms.