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A review of requirements for firms entering into or expanding in the banking sector: one year on

In March 2013, the Financial Services Authority (FSA) and the Bank of England published their review of requirements for firms entering or expanding into the banking sector. This review set out changes in two key areas: reforms to the authorisation process for bank applicants; and a major shift in the approach to the prudential regulation of banking start-ups.

Published on 07 July 2014

These changes were designed to reduce the barriers to entry and expansion in the banking sector and enable increased competitive challenge to existing banks.

On 7 July 2014, the Prudential Regulation Authority (PRA) and FCA published a joint report which includes an update on progress in implementing these changes since their inception in April 2013, and clarifies some issues that have arisen following the original review. Feedback from applicant firms, recently authorised firms and key stakeholders is reflected in this report.

The reports will be of primary interest to UK-incorporated firms that are considering applying to become retail banks.

A review of requirements 7 July 2014