U.K. Government Proposes Changes To FCA & PRA Regulatory Framework

The U.K. government has confirmed a set of reforms to the financial services regulatory framework through proposed legislation aimed at changing how the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) operate.

The reforms include shorter statutory deadlines for regulatory approvals and authorisation applications. Under the proposed changes, deadlines for complete applications for new firm authorisations and variations of permission will reduce from six months to four months, while incomplete applications will move from 12 months to 10 months. Approval timelines for Senior Manager and Certification Regime applications will fall from three months to two months.

The government also plans to require the FCA and PRA to publish long-term regulatory strategies every five years and provide annual progress updates.

Other measures include reducing procedural requirements, limiting consultation obligations for minor rule changes, and simplifying how regulators apply statutory principles in day-to-day decision-making processes.