On 12 December 2024, the Bank of England (BoE) and the Prudential Regulation Authority (PRA) published statements of policy (SoPs) setting out their respective approaches to cost benefit analysis (CBA).

The BoE’s SoP sets out its approach for conducting CBAs when making rules for central counterparties (CCPs) and central securities depositories (CSDs). It explains how the BoE estimates costs and benefits as part of its policymaking process, and the role of regulation of CCPs and CSDs in ensuring the stability of the UK’s financial system. The PRA’s SoP sets out how it will conduct CBAs in relation to rules for PRA regulated firms..

Both the BoE and PRA are welcoming feedback on their SoPs from members of the public until 30 September 2025. They plan to review the SoPs in Q4 2025, taking account of feedback from the CBA Panel, other stakeholders and any lessons learnt from future CBAs. Depending on the outcome of the review, revised SoPs may be published in 2026.