PRA to streamline supervision as part of 2026 priorities
News release
The Prudential Regulation Authority (PRA) has today published its supervisory priorities for 2026, outlining in a letter its sector-specific priorities for the coming year to all banks, building societies, insurers and other PRA-regulated firms.
These include important plans to streamline the supervisory process by moving some supervisory activity, including Periodic Summary Meetings (PSMs), to a two-year cycle.
These meetings are an internal, formal review led by the PRA to consider potential risks posed by a regulated firm to the PRA’s objectives, and to set the supervisory strategy for the coming period.
Over recent years, the PRA has transitioned some firms to biennial review cycles, reflecting the longer-term nature of supervisory workplans and allowing firms and supervisors to focus resources more efficiently on identifying and remediating key risks.
From 1 March larger firms will begin to move to this two-year cycle, while maintaining a regular cadence for discussion of important matters, alongside ad hoc supervisory meetings. This will result in firms having a more proportionate and efficient set of engagements with the PRA.
The Priorities letters are designed to help firms understand the main areas of supervisory focus over the next year, addressing key risks in each sector while setting out the PRA’s priorities to support competition, competitiveness and growth. Other streamlining measures include:
- Accelerating timelines for reviewing senior manager applications, new firm authorisations and internal ratings-based model change pre-approval applications;
- Developing the new UK captive regime for insurers, through a summer 2026 consultation with a view to launch the new regime in 2027;
- And streamlining and modernising reporting requirements through the Future Banking Data project.
Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the PRA, said:
'As we set out our priorities for 2026, we are also updating our approach by moving from an annual to a two-year supervisory cycle for firms. This will allow us to make our operations more efficient and help streamline firms’ interactions with the PRA.'
These priorities build on the PRA’s extensive work to maintain stability and promote growth and competitiveness in the financial sector. Recent changes include:
Notes to editors
- The UK Deposit Takers annual supervisory letter
- The ARTIS annual supervisory letter for international banks and investment firms
- The Insurance annual supervisory letter
- Further information on the PRA’s Approach to Supervision
- Supervisors will engage individually with firms in due course on what this means for the timing of each firm’s next PSM.
- The PSM process typically involves the PRA internally setting out the forward-looking supervisory strategy for individual firms, before a letter is shared with the firm’s board and management to outline its assessment of key risks, as well as any areas of focus, and request mitigating actions be taken where necessary.
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