Results of the firm feedback survey 2021

The annual firm feedback survey gives PRA-authorised firms the opportunity to comment on their experience of being supervised by the PRA.
Published on 11 October 2022

2021 survey results

Results of the firm feedback survey 2021

Every year, we seek feedback from firms on the effectiveness and quality of our supervisory framework and approach. One of the ways we do this is through the annual firm feedback survey. This process is overseen by a team that is independent of frontline supervision. 

The survey gives PRA-authorised firms the opportunity to comment on a number of topics, including:

  • our understanding of firms;  
  • the firms’ understanding of our regulatory objectives and expectations;
  • our level of challenge to firms;
  • the effectiveness of firms’ relationship with us;
  • our co-ordination with other regulators and data requests; and
  • our approach to new technologies.

Firms can make additional comments. We also ask them what three improvements we could make, as well as addressing a topical question.

We appreciate firms’ participation in the survey. It is important, as we evolve, that we continue to understand both what firms think works well, and what we might do differently.

Which firms are included? When should firms expect to receive the survey?

We send a standardised survey to all firms. Normally, we invite large firms to follow-up meetings to discuss their views in more detail and hold roundtable discussions with small firms. These were suspended in 2021 due to of Covid-19 restrictions, but we plan to resume them for the 2022 survey.

How are the survey results used?

We analyse firms’ responses to identify both good practices, and areas where we could improve how we supervise firms. This analysis is reported to our senior management and shared with the PRA’s Practitioner Panel. We also follow up on the points, including with the relevant supervisory directorate, being mindful of any confidentiality and sensitivity issues.

How have we responded to survey results?

As in previous years, firms commented that timescales for decisions on Senior Managers and Certification Regime (SMCR) applications – where large volumes of applications continue to be received and for which Financial Conduct Authority (FCA) consent is required – remain in some cases to be too long. To address this, we are continuing to work closely with the FCA to help streamline the review process across the two authorities. We are also considering ways of helping firms improve the quality of their applications, such as engaging with trade bodies. Furthermore, we will continue to monitor capacity and progress, and ensure senior oversight to address any emerging issues.

Firms commented on the degree of co-ordination with overseas regulators. We will look to work with other regulators to improve co-ordination where appropriate as we develop our future supervisory approach. 

In response to feedback about the increased number of information requests during the Covid-19 pandemic, we have taken steps to reduce the number of requests and to give firms more time to respond. We are also seeking to devise a more consistent approach for data requests in times of stress, so that firms can be better placed to respond. In the longer term, we are looking to invest in better data analysis capability, through aspects such as statistical testing, to reduce the burden on firms.

Firms continue to want less frequent changes in the composition of supervision teams, but they recognise that the quality of handovers has improved.

Firms want easier access to information on our website. In response, we have published the Prudential & Resolution Policy Index on our website, which divides all PRA and Resolution policies into sectors and topic areas, providing a dedicated page listing all policies for each topic area. In addition, we have enhanced the search function on our website and used reference numbers for papers to generate more streamlined results. We are also planning to introduce an overview menu to aid navigation and are exploring additional methods to upgrade usability.

New issues in 2021

A number of points emerged from last year’s survey, including:

  • firms commented that the quality of supervisory feedback provided is high —however, they would benefit more from increasing the amount and timeliness of this information;
  • firms were largely positive about our understanding of their business models;  
  • our approach to operational resilience was generally well received, with firms noting the effectiveness of guidance, and good coordination with the FCA in this joint exercise.

We continue to attach great importance on the feedback received from firms on our supervisory approach. The 2022 feedback process is now under way, and we continue to liaise closely with firms to further improve our understanding of their concerns, and act where necessary.

Previous aggregated survey results