PRA outlines April regulatory updates and business plan

The Prudential Regulation Authority (PRA) has published its April 2026 Regulatory Digest, outlining several new consultations, policy statements, and its business plan for 2026/27. The digest covers reforms to the Senior Managers and Certification Regime and proposals for fees and high loan-to-income lending.

SM&CR reforms and fee proposals

The PRA's April digest highlights key regulatory developments, including Phase 1 reforms to the Senior Managers and Certification Regime (SM&CR).

These reforms, detailed in Policy Statement PS12/26, aim to ensure the SM&CR effectively supports a dynamic, stable, and competitive financial services sector.

The Financial Conduct Authority (FCA) has published parallel reforms.

The PRA also announced its 2026/27 Business Plan, confirming a continued focus on safety, soundness, and policyholder protection through a proportionate and efficient regulatory approach.

Additionally, Consultation Paper CP7/26 sets out proposed fees for all firms paying PRA fees in the 2026/27 fee year, relevant to all regulated entities.

The plan details work for each strategic priority.

Targeted amendments and lending limits

The digest includes final low-impact amendments to PRA rules (LIAF01/26), improving clarity for regulated firms.

A new consultation (LIAC01/26) proposes a low-impact amendment to the Groups Part of the PRA Rulebook, clarifying proportional consolidation for voting rights.

This aligns rules with participation definitions and addresses an inconsistency.

The consultation closes on May 21, 2026.

Separately, CP6/26 proposes amendments to the PRA Rulebook on high loan-to-income (LTI) lending, implementing Financial Policy Committee (FPC) recommendations.

For insurance, the PRA welcomed HM Treasury's reforms to the UK's risk transformation regime and published its Insurance taxonomy v2.2.0 PWD for industry feedback by May 20, 2026.

Continuous regulatory refinement

This digest highlights the PRA's continuous effort to refine its regulatory framework, reflecting an increasingly complex financial landscape.

While individual updates appear incremental, their cumulative effect points to a significant, ongoing compliance burden for regulated firms.

The volume of consultations and final rules suggests a proactive, yet demanding, supervisory approach.