On 7 October 2026, the Prudential Regulation Authority (PRA) published Consultation Paper 13/26 – Updating regulatory thresholds: An autopilot approach (CP13/26).
Background
In CP13/26 the PRA proposes a transparent, rules-based framework that would automatically update in-scope regulatory thresholds every five years.
In particular, the PRA proposes to:
- Introduce automatic indexation for a specified set of fixed nominal thresholds (which are expressed in fixed, numerical figures that are not adjusted for factors like economic growth or inflation, e.g. £50 billion total assets) identified by applying the proposed scoping criteria.
- Apply a consistent timeline and indexation methodology across the framework, including the use of UK nominal Gross Domestic Product (GDP) as the indexation metric.
- Introduce a dedicated indexation statement of policy setting out how the PRA intends to operationalise practical aspects of the framework.
Alongside the consultation proposals, the PRA has set out a discussion section where it is seeking views on thresholds where the costs and benefits to firms of indexation are less clear. These thresholds are not currently being proposed for inclusion in the framework but may be in future.
Next steps
The deadline for comments on both the consultation proposals is 7 February 2027. The PRA intends to implement the framework before the first automatic adjustment to in-scope thresholds takes effect, which is proposed for 1 July 2031.
The PRA invites responses to the discussion section by 7 February 2027.