Policy paper

Prudential Regulation Authority: Performance Review Meeting – January 2026

Updated 28 April 2026

Record of the meeting between the Economic Secretary to the Treasury and the Chief Executive of the Prudential Regulation Authority (PRA).  

1. On 20 January 2026, the Economic Secretary to the Treasury (EST), Lucy Rigby, met the Chief Executive Officer (CEO) of the Prudential Regulation Authority (PRA), Sam Woods, to discuss the PRA’s performance against its statutory objectives and in relation to the government’s economic policy.
2. The EST thanked the CEO for the PRA’s collaboration on the launch of the Mutuals Landscape Report in Rochdale in December, and noted the positive feedback she had received on its content, and on the PRA’s joint working with the Financial Conduct Authority to prepare the report.
3. The CEO outlined the PRA’s priorities on the follow-up to the Mutuals Landscape Report, noting that it had already removed certain regulatory requirements for building societies via the Strong and Simple framework where these were no longer considered necessary or proportionate. He explained that the PRA was now examining barriers to credit unions establishing credit union service organisations. He also noted that the PRA was exploring ways to make mergers between mutual insurers more straightforward and was planning some analysis on the credit union sector. The EST welcomed this programme of work and indicated that she was keen to remain closely engaged, given government priorities in this area.
4. The EST asked the CEO for an update on the PRA’s strategy. The CEO explained that the PRA was currently developing its next iteration of its annual business plan, and that no major shifts in the PRA’s overall strategic direction were planned. He emphasised that the PRA would continue to focus on supporting growth and international competitiveness, alongside furthering its primary objectives.
5. The EST and CEO discussed the Bank of England’s Financial Policy Committee’s assessment of bank capital requirements. The EST noted positive feedback from firms regarding the direction of the PRA’s proposals, and highlighted that some stakeholders were keen in particular to look at areas including the leverage ratio requirement and buffer usability. The CEO confirmed that the Bank of England had received similar messages from firms and would consider the feedback carefully as it considered its next steps.
6. The EST and CEO discussed the government’s target to reduce the administrative costs of regulation for businesses by 25% by the end of the Parliament. The CEO noted that the PRA was making good progress, and that for some change, such as reforms to the Senior Managers & Certification Regime (SMCR) it would be relatively straightforward to calculate reductions in administrative burdens, but that the impact of some other reforms may be harder to quantify. He highlighted that the PRA had significantly reduced authorisation timelines for certain approvals – with the median time for senior manager approvals having fallen from 59 days the previous year to 30 days this year.
7. The EST asked the CEO about the PRA’s work on growth and competitiveness. The CEO noted the PRA’s and FCAs joint Scale-Up Unit, as announced under the Leeds Reforms, was now operational, though it remained at an early stage, and that work under the Office for Investment: Financial Services was progressing well. The EST underlined the importance of ensuring that firms are aware of the different types of support available.
8. The EST highlighted HMT’s recent appointment of AI Champions, and asked for the CEO’s reflections on the PRA’s strategy on AI. The CEO observed that  UK regulators had so far focused on allowing innovation to develop within existing frameworks to avoid unduly constraining firms. He acknowledged that there was scope to do more to support innovation, including through sandboxes and other tools. They agreed that this would remain an area of shared focus.