2.4 In CP5/22, the PRA proposed a definition of a Simpler-regime Firm. The CP proposed that a firm meeting this definition would be in scope of a simpler prudential regime that the PRA intends to build. To meet the definition, a firm would have to satisfy all of a set of scope criteria. CP16/22 contained revised scope criteria, based on feedback received to CP5/22, which the PRA proposed would determine eligibility for a TCR. In CP4/23 the PRA republished those criteria and proposed that eligibility for liquidity and disclosure simplifications would be determined by reference to those criteria.

General

2.5 The PRA received the following responses to CP5/22 that did not refer to a specific scope criterion, but nevertheless concerned the definition of a Simpler-regime Firm.

2.6 Seven respondents commented that they supported the overall definition, and ten respondents commented that they supported the overall objectives of the Strong and Simple initiative. One respondent supported the PRA's proposed intention to base the scope criteria on existing thresholds where possible.

2.7 One respondent suggested the PRA could consider two sliding scales of requirements that would apply to firms on both sides of the thresholds, to avoid cliff-edge effects. Another respondent also favoured the avoidance of cliff edges. One respondent suggested that having multiple layers of a Strong and Simple Framework could make the overall regulatory framework more complex.