Regulatory News
PRA proposes automatic uplift for 128 regulatory thresholds
The PRA proposes automatic rises for 128 regulatory thresholds across banking, insurance and credit unions, with the first update due on 1 July 2031.
- 128 thresholds would increase automatically with nominal GDP.
- The first update would fall on 1 July 2031.
- The consultation opens on 7 October 2026 and closes on 7 February 2027.
Action
The Prudential Regulation Authority proposes to make 128 thresholds across banking, insurance and credit unions rise automatically with nominal Gross Domestic Product.
It says the package would modernise the framework, lift proportionality and cut compliance costs for many firms.
The PRA also says the move would replace manual ad hoc updates and give firms more certainty for business planning.
Respondents
The thresholds cover which rules apply to firms, how they apply, and what firms must report to the PRA.
The largest in-scope threshold is the £320 billion total assets threshold for detailed capital reporting.
The smallest is a £7,500 threshold covering amounts owed to a credit union by an individual.
Other thresholds include the size of an insurer subject to Solvency UK and the Small Domestic Deposit Takers regime total assets threshold.
Effective
The first update would take place on 1 July 2031.
Further updates would follow every five years thereafter.
The consultation opens on 7 October 2026 and closes on 7 February 2027.
Penalty
No penalty was announced.
Source: Bank of England News,