[6] It’s why we narrowed the gap between capital requirements for smaller banks using the Standardised Approach and larger banks using the Internal Ratings-Based Approach – in a way that reflects the risks they take and facilitates competition and healthier markets. [7] It’s why we established a New Bank Start-up Unit that, since 2013, has authorised thirty new banks to take on incumbents. [8] It’s why we are taking steps to streamline processes for authorizing some ventures in the wholesale insurance and reinsurance sector. [9] And it’s why we, along with the government, are considering a mobilisation regime for new insurers as part of the Solvency II review. [10] In these instances, our ‘regulatory T cells’ told us that we could takes steps to boost the health of markets while maintaining strong protection against risks from disorderly failure. Responsive regulation can be a helping hand boosting competition, not a dead hand stifling innovation. International competitiveness Effective competition is already a secondary objective for the PRA. But as I mentioned earlier, we will soon have another secondary objective to facilitate (subject to alignment with international standards) the international competitiveness of the UK economy, including in particular the UK’s financial services sector. This objective will also include facilitating medium to long term growth. I’m going to turn now to how we intend to use our new powers to pursue this new objective. This is going to be a very important change for us.
Page 1  The PRA's future approach to policy − speech by Vicky Saporta Given at the City & Financial Global event  Page 2  Published on 27 September 2022  Vicky explains how regulation that is strong and responsive can avoid unnecessary trade-offs between competitiveness and resilience. The Financial Services and Markets Bill 2022 introduces new powers and a new secondary objective on competitiveness and growth for the PRA. Vicky argues that the PRA can use these new powers to regulate responsively, and better tailor rules to the needs of the UK. Vicky sets out the PRA’s intention to take a proactive approach to the new objective. She explains that as a global financial hub, the UK’s competitiveness in financial services rests on its skilled workforce, and its deep and specialised markets. Vicky argues that the UK economy has more to gain by having a regulatory regime that is open to international business, nondiscriminating, predictable, transparent, responsive to threats and opportunities rather than in weakening standards to attract business. Speech Introduction The Government’s Financial Services and Markets Bill introduces important changes to the PRA’s powers and responsibilities. It does so to implement reforms identified by the Future Regulatory Framework for Financial Services Review, or the ‘FRF Review’. The reforms will move financial regulation back to a British style of regulation based on the Financial Services and Markets Act of 2000, which we refer to as ‘FSMA’. Most technical rules will be made by regulators accountable to Parliament.