Regulating & Supervising well: A more effective, efficient framework

Key Elements of the Simplification Framework

Simplification is taking place across four key pillars:

Supervision: Introduction of an integrated, risk-based supervisory approach, with multi-disciplinary teams and streamlined engagement, aiming for clearer communication and a focus on material risks.
Regulation: Ongoing review and consolidation of domestic rules to avoid duplication (including in areas such as insurance, banking, and capital markets and funds), with a focus on aligning with updated EU standards and removing outdated requirements.
Cross-cutting initiatives include a revision of the Fitness & Probity Regime, a Revised Consumer Protection Code, updated Cross-Industry Guidance on Operational Resilience, and upcoming reviews of corporate governance codes, SEAR and the Cross-Industry Guidance on Outsourcing.
Gatekeeping: Improvements to authorisation processes and fitness & probity processes, including faster processing times, enhanced guidance, and the introduction of a new Gatekeeping Division to enhance efficiency and consistency.
Reporting: Comprehensive review of data collection and reporting requirements, with a focus on eliminating duplication, retiring unnecessary reports, and maximising re-use of existing data.

What This Means in Practice

Firms can expect:

• a regulatory framework that is clearer, simpler, more coherent, and aligned with the evolving European system.
• more predictable process and procedures.
• greater proportionality, with risk-based regulation and supervision.
• improved supervision that is forward looking and outcome focused.

If you have any questions or would like to discuss the implications of this report in more detail, please let us know.