Summary
The PRA will review how regulation affects lenders’ access to capital, competitiveness, and operating costs, while increasing its focus on cyber and operational resilience. Lenders should monitor proposed SM&CR reforms that could reduce compliance burdens, with final rules expected in 2027.
The PRA and FCA have proposed major reforms to the Senior Managers and Certification Regime (SM&CR), with potential implications for governance, compliance costs and senior appointments across UK financial services.
The proposals could reduce regulatory administration, simplify certain approval processes and give firms greater flexibility when appointing senior staff, while retaining accountability for key decision-makers.
For bridging and development finance lenders, the practical impact will depend on their regulatory status and whether they fall within the relevant PRA or FCA requirements. Compliance and operations teams should review which proposed changes apply to their business, assess potential savings in staff assessment and reporting processes, and prepare for the consultation outcome.
The consultations close on 22 January 2027, with final policy expected in 2027 and implementation proposed for the second half of the year, subject to legislative changes.
Source
This post is Vector Finsoft's analysis. Read the original for the full details.
- Reuters(opens in a new tab)reuters.com