On 5 December 2023, the Prudential Regulation Authority (PRA) published Policy Statement PS15/23 – The Strong and Simple Framework: Scope criteria, liquidity and disclosure requirements (PS15/23).

In PS15/23, the PRA provides feedback to responses to consultation papers CP4/23 – The Strong and Simple Framework: Liquidity and Disclosure requirements for Simpler-regime Firms and CP14/23 – Pillar 3 remuneration disclosure. In relation to the Small Domestic Deposit Takers (SDDT) criteria, it also provides feedback to responses to CP16/22 – Implementation of the Basel 3.1 Standards and further feedback to responses to CP5/22 – The Strong and Simple Framework: a definition of a Simpler-regime Firm.

It also contains the PRA’s final policy, as set out in:

  • Amendments to the Liquidity Part of the PRA Rulebook (Appendix 1).
  • Amendments to the Reporting Part of the PRA Rulebook (Appendix 1).
  • Amendments to the Disclosure Part of the PRA Rulebook (Appendix 1).
  • Updated Supervisory Statement SS24/15 – The PRA’s approach to supervising liquidity and funding risk (Appendix 2).
  • Updated Statement of Policy (SoP) – Liquidity and funding permissions (Appendix 3).
  • Updated SoP – Pillar 2 Liquidity (Appendix 4).
  • Introducing a new SoP – Operating the Small Domestic Deposit Taker regime (Appendix 5).

The PRA flags that it has decided to rename ‘Simpler-regime firms’ to ‘Small Domestic Deposit Takers’ or SDDTs, and ‘Simpler-regime consolidation entities’ to ‘SDDT consolidation entities’.

The rules relating to the definition of an SDDT and the ability for eligible firms and consolidation entities to become SDDTs and SDDT consolidation entities, along with Glossary changes, application rules and definitions will take effect from 1 January 2024. The rules on disclosure will take effect from 1 January 2024. The other rules in PS15/23 will take effect from 1 July 2024.

The PRA plans to consult on simplifications to Pillar 2 and buffer requirements for SDDTs and SDDT consolidation entities in Q2 2024.