6.1 Chapter 6 in DP1/21 discussed how the PRA could go about developing and implementing a strong and simple prudential framework.

6.2 It first discussed the implementation of the simpler regime and asked a question (Q29) about how the introduction of a simpler regime should be co-ordinated with the forthcoming introduction of the Basel 3.1 reforms; responses to this question are discussed in chapter 4 of this statement. It also explained the links with the PRA Rulebook and the Financial Services Future Regulatory Framework.

6.3 Although DP1/21 did not discuss policy options for the layers of a strong and simple framework above the simpler regime, it asked the following question on what the PRA should consider for larger firms:

Q30: Do you have initial thoughts about policy options for the parts of the strong and simple framework that would apply to non-systemic banks and building societies that would not be in scope of the simpler regime?

6.4 There were a small number of suggestions made in responses to this question. These included that the PRA consider: adopting some of the simplified requirements that will be developed for the simpler regime for the higher layers; exploring simplifications to Pillar 1 and 2A requirements (eg by providing more templates); and reducing the frequency of regulatory assessments. Another respondent suggested exploring whether solvent wind-down planning could be applied to larger, non-complex firms.