2.147 CP4/23 reaffirmed the PRA's intention to publish proposals for simplified prudential requirements in distinct phases. The PRA noted its intention for Phase 2 to focus on simplifications to capital requirements, specifically Pillar 2 and buffer requirements, for SDDTs.

2.148 There were several comments received in response to CP4/23 that addressed suggestions for the capital elements of the SDDT regime. We acknowledge the comments made and will consider them as we continue to develop the SDDT regime. The PRA is in the process of developing its proposals for Phase 2 of the SDDT regime and remains on target to consult on these proposals in Q2 2024.