We are also considering what a layer of the framework for ‘mid-tier’ firms might look like, and are currently undertaking some engagement with relevant firms to understand where they see scope for simplification of the prudential regime. Other Priorities Before I close, I did want to note our ongoing focus on Diversity & Inclusion in the sector. This is an important area which helps enhance governance, decision-making and risk management in firms, as well as the services you provide your members. We plan a consultation paper later this year, building upon the joint 2021 PRA/FCA discussion paper18, setting out proposals to introduce a new regulatory framework on diversity, equity and inclusion in the financial sector. I strongly encourage you to engage with those proposals once they are published. In Conclusion Let me briefly sum up. I’ve stressed today the important role that mutuals play in providing your services to a diverse range of households and business right across the UK. It’s vital those services are 16 CP4/23 - The Strong and Simple Framework: Liquidity and Disclosure requirements for Simpler-  regime Firms | Bank of England 17 FS1/21 – ‘Responses to DP1/21 ‘A strong and simple prudential framework for non-systemic banks and building societies’ | Bank of England 18 DP2/21 – Diversity and inclusion in the financial sector – working together to drive change | Bank of England  Bank of England  Page 9  underpinned by resilient firms.
The new objective would require the PRA to act in a way which, in advancing our primary objective, and subject to aligning with relevant international standards, facilitates the international competitiveness of the UK economy and its growth in the medium to long term. In a recent speech14 my colleague, Vicky Saporta, set out how we plan to take forward that new objective, through an approach based on ‘responsible openness’. In short this means we will provide a predictable and stable regulatory environment that is grounded in international standards (for example those set out by the Basel Committee), and we will collaborate closely with overseas regulators to maintain their trust in what we do, as well as that of investors and firms. But importantly and against that backdrop of responsible openness, there is still space to tailor rules to UK circumstances when it is appropriate and when we can do so in ways that maintain trust across markets and with fellow regulators. And that last point about supporting the specific needs of the UK economy is of particular relevance to our discussions here. I see it as precisely where the mutual sector comes in, through providing high quality financial products and services to households and businesses right across the UK, including some who might not have access through any other routes.