Our secondary objectives

What are our secondary objectives?

The Financial Services and Markets Act 2000 (FSMA) states that:

‛When discharging its general functions in a way that advances its objectives […] the PRA must, so far as reasonably possible, act in a way that advances the following secondary objectives –

(a) the competition objective, and

(b) the competitiveness and growth objective.’

The secondary competition objective (SCO) is: ‘facilitating effective competition in the markets for services provided by PRA authorised persons in carrying on regulated activities’.

Since it came into effect, our SCO has helped inform the design of several important parts of our framework for prudential regulation. In addition to new policies, we take a proactive approach to our secondary competition objective by considering changes to existing policies to facilitate effective competition, and undertake research on competition in UK financial markets.

The secondary competitiveness and growth objective (SCGO) is: ‘facilitating, subject to aligning with relevant international standards – (a) the international competitiveness of the economy of the United Kingdom (including in particular, the financial services sector through the contribution of PRA authorised persons), and (b) its growth in the medium to long term’. 

The SCGO came into force in 2023 and sits alongside our SCO. We take a proactive approach to the SCGO and have embedded competitiveness and growth considerations in our policymaking processes. We are required to report yearly on how the PRA has advanced its secondary objectives.

Read about how we have advanced both our secondary objectives in the PRA’s Competitiveness and Growth Report 2025. 

Our key communications

Our work in relation to the SCO and SCGO is covered in further detail in the following key communications.

PRA Business Plan

The 2026/27 Business Plan sets out the workplan for each of our strategic priorities and strategy to advance our primary and secondary objectives. This year’s business plan reflects the evolution of our priorities, and in particular the work we are doing to deliver our new secondary objective on competitiveness and growth.

Annual reports on secondary objectives

The PRA has reported progress on its secondary objectives to HMT through two dedicated reports in 2024 and 2025, and through the PRA Annual Report. The latest report can be found in Box A of the Annual Report: Advancing the PRA's secondary objectives.

SCGO Metrics

The PRA publishes annual metrics to support transparency and accountability on its Secondary Competitiveness and Growth Objective (SCGO). These metrics provide insight into key aspects of the PRA’s performance and are grouped under three regulatory foundations.

• The 2025/26 SCGO metrics are available in the Appendix to the PRA Annual Report 2025/26.
• The 2024/25 SCGO metrics are available in the Appendix to the second SCGO report.
• The 2023/24 SCGO metrics are available in the Appendix to the first SCGO report.

Secondary objectives news and publications

Secondary objectives updates 2026

• 25 June 2026: We published the PRA Annual Report 2025/26 which includes a box on secondary objectives.
  
• 25 June 2026: We published the 2025/26 SCGO metrics as an Appendix to the PRA Annual Report 2025/26. 

Secondary objectives updates 2025

• 6 October 2025: We hosted a research incubator event in collaboration with the London School of Economics’ Growth Lab. The event aimed to generate ideas and proposals for collaborative academic research aligned with the PRA's secondary competitiveness and growth objective (SCGO). It was attended by leading academics in the field of financial regulation, financial economics, and competition economics.
• 3 September 2025: We published the PRA’s response to the House of Lords FSRC report.
• 26 June 2025: We published the PRA Annual report on secondary objectives 2025.
• 13 June 2025: The House of Lords Financial Services Regulation Committee (FSRC) published Growing pains: clarity and culture change required: An examination of the secondary international competitiveness and growth objective, which contained 34 recommendations for the PRA, FCA and Government for advancing the SCGO.
• 20 February 2025: We published policy statement PS3/25, which detailed the PRA’s approach to policymaking.
• 5 January 2025: Sam Woods, CEO of the PRA, responded to the Prime Minister’s letter from December 2024, outlining the actions the PRA had taken to facilitate competitiveness and growth, and further actions it could take.

Secondary objectives updates 2024

• 24 December 2024: the Prime Minister wrote to Sam Woods, CEO of the PRA, to reiterate the Government’s growth mission. Sam Woods responded in January 2025.
• 30 July 2024: The Bank of England’s Independent Evaluation Office (IEO) published its review of the PRA’s progress with respect to the SCGO, in the IEO Evaluation of the PRA’s Approach to the Secondary Competitiveness and Growth Objective. The PRA’s response to the IEO evaluation is contained in the 2024 SCGO report.
• 30 July 2024: We published the PRA Annual report on secondary objectives 2024.

Secondary objectives updates 2023

• 8 December 2023: The PRA published consultation paper (CP) 27/23 - The Prudential Regulation Authority’s approach to policy. The consultation paper proposes that we take a proactive approach to the secondary competitiveness and growth objective, and that it will have a material impact on how we develop policy.
• 19 September 2023: The PRA hosted an international conference to develop a deeper understanding of the core linkages and relationships between financial regulation and international competitiveness and growth.
• 6 July 2023: We published the Annual Competition Report 2023 as part of the PRA Annual Report 2022/23.
• 27 February 2023: The regulatory foundations of international competitiveness and growth − speech by Vicky Saporta. The speech outlines what a new secondary competitiveness and growth objective will mean for how the PRA makes rules.

Secondary objectives updates 2022

• 7 December 2022: Implementing Basel 3.1 in the UK − speech by Phil Evans. The speech sets out proposed rules that cover parts of the Basel III standards.  Phil explains that he does not see a trade-off between maintaining these standards and maintaining the UK’s global competitiveness and relative standing. But within that broad approach, the PRA will make some evidence-based adjustments to tailor the package to the UK market.
• 27 October 2022: Growth and competitiveness − speech by Sam Woods. The speech discusses how independent regulators can support the UK as a global financial centre.
• 27 September 2022: The PRA's future approach to policy − speech by Vicky Saporta. The speech discusses how strong and responsive regulation can avoid unnecessary trade-offs between competitiveness and resilience.
• 12 September 2022: The PRA published discussion paper (DP) 4/22 – The Prudential Regulation Authority’s future approach to policy setting out its intended approach to policymaking, including its approach to the SCGO.
• 23 June 2022: We published the Annual Competition Report 2022 on pages 66-81 of the PRA Annual Report 2022. 

Secondary objectives updates 2021

• 17 June 2021: We published the Annual Competition Report 2021 on pages 53-61 of the PRA Annual Report 2021.

Secondary objectives updates 2020

• 18 June 2020: We published the Annual Competition Report 2020 on pages 47-57 of the PRA Annual Report 2020.

Secondary objectives updates 2019

• 24 October 2019: We published a speech ‘Credit union meets robot’ given by Sam Woods, Deputy Governor for Prudential Regulation and PRA Chief Executive at the Mansion House, London. The speech looks at the barriers to growth for small banks and credit unions, which can be the result of complex regulatory rules and ‘cliff-edge’ thresholds, and explains what we are doing about them at the PRA.
• 6 June 2019: We published the PRA Annual Competition Report 2019 as part of the PRA Annual Report 2019.

Secondary objectives updates 2018

• 14 June 2018: We published the PRA Annual Competition Report 2018 as part of the PRA Annual Report 2018.

Secondary objectives updates 2017

• 6 July 2017: We published the PRA Annual Competition Report 2017 as part of the PRA Annual Report and Accounts 2017.

Secondary objectives updates 2016

• 30 June 2016: We published the PRA Annual Competition Report 2016 as part of the PRA Annual Report and Accounts 2016.