Regulatory thresholds set to shift to automatic increases

Key dates

2026-10-07

PRA consultation CP13/26 opens.

2027-02-07 Deadline

PRA consultation CP13/26 closes and responses are due.

2031-07-01

First proposed automatic threshold update would take effect, subject to the consultation outcome and final rules.

Suggested considerations

• Compliance teams may wish to review CP13/26 and identify which of the 128 proposed thresholds currently determine the firm's prudential categorisation, reporting obligations or application of specific rules.
• Firms should consider submitting consultation responses by 7 February 2027, particularly on the suitability of nominal UK GDP as the index, the five-year adjustment interval, the treatment of thresholds near business-planning boundaries and the thresholds excluded from the main proposal.
• Banks and building societies may wish to model how the proposed mechanism could affect future eligibility for the Small Domestic Deposit Takers regime and detailed capital-reporting requirements, while recognising that no 2031 value has been specified in the publication.
• Insurers may wish to assess potential future effects on Solvency UK scope and related governance, reporting and capital-planning assumptions.
• Credit unions may wish to inventory member-related monetary thresholds, including the £7,500 threshold, and assess whether systems and monitoring processes can accommodate future indexed values.
• Regulatory change teams should track the outcome of CP13/26 and the parallel Section 4 discussion on excluded and FCA-joint thresholds rather than treating the proposed increases as current law.
• Firms operating across UK and non-UK regimes may wish to consider potential divergence between UK automatic indexation and static or differently indexed thresholds in other jurisdictions.

What changed

CP13/26 proposes that 128 thresholds determining which PRA rules apply, how those rules apply and what firms must report should be indexed to nominal UK GDP published by the Office for National Statistics. The proposed indexation cycle is every five years, using nominal GDP because it captures both price changes and real economic growth. In-scope examples include the £320 billion total-assets threshold for detailed capital reporting, thresholds determining insurer scope under Solvency UK, the Small Domestic Deposit Takers regime total-assets threshold and a £7,500 credit-union threshold for amounts owed by an individual. Thresholds considered unsuitable for automatic indexation are excluded from the main proposal; certain excluded thresholds, including thresholds jointly owned with the FCA

Who is affected

• UK banks and building societies subject to PRA thresholds, including firms approaching the Small Domestic Deposit Takers regime threshold
• UK insurers and insurance groups whose regulatory treatment or Solvency UK scope is determined by size thresholds
• UK credit unions subject to member-balance and other PRA thresholds
• Larger UK banks affected by the £320 billion total-assets threshold for detailed capital reporting
• Firms with FCA/PRA joint thresholds or other thresholds excluded from the automatic-indexation proposal but potentially covered by the parallel discussion paper

Related regulations

• Solvency UK
• Small Domestic Deposit Takers regime
• PRA detailed capital reporting requirements
• Strong and Simple
• Basel 3.1
• PRA/FCA jointly owned regulatory thresholds