On 10 August 2022, the House of Commons’ Treasury Sub-Committee on Financial Services Regulations published a letter addressed to the Prudential Regulation Authority (PRA) regarding the ‘Strong and Simple Framework’.

The letter sets forth that on 20 July 2022, the Sub-Committee held its inaugural meeting, where evidence was taken from two ‘challenger’ banks, as well as representatives from the banking and the building society sectors, on the PRA’s ‘Strong and Simple Framework consultation’. In light of the evidence received the Sub-Committee is asking the PRA for its views on increasing the proposed threshold. It has also drawn attention to the risk that thresholds and cliff-edges can create barriers to growth, and it has asked the PRA for its views on how firms would transition between layers within the Strong and Simple Framework.