The 2025 Firm Feedback Exercise
The 2025 survey questionnaire was sent to 814 PRA-regulated firms or Groups of firms, nearly double the number in 2024. 439 firms responded (up from 303 in 2024). We asked sampled firms to provide feedback on what works well and what we might do differently by indicating the extent to which they agreed with statements on a range 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 our relationship with firms;
- our co-ordination with other regulators and data requests;
- the clarity and accessibility of prudential policy, rules, and requirements;
- the PRA’s secondary competitiveness and growth objective; and
- the updated PRA Rulebook and PRA communications.
Firms were also asked to offer additional comments and suggest areas for improvement.
We followed up on the survey by holding meetings with a cross-section of firms to help us understand better the reasons for their responses and to explore in more detail how they view the PRA and its work.
How are the survey results used?
We analyse firms’ responses to identify areas where we could improve how we supervise firms, and good practices we should maintain and apply more broadly where appropriate. This analysis is reported to senior management in the PRA and the Prudential Regulation Committee. The analysis is also shared with the PRA’s Practitioner Panels. We follow up on the points raised by firms, including with the relevant supervisory directorate, being mindful of any confidentiality and sensitivity issues.
Main messages from the 2025 Exercise
The large expansion of the numbers of firms included in the Exercise in 2025, notably the inclusion of all credit unions for the first time, has provided us with considerably more information on how firms view the PRA. However, it is important to analyse the results carefully to understand, for example, year-on-year trends. For example, average scores for the population were slightly lower than in 2024 for a majority of the topics covered. However, if the responses from credit unions are stripped out, (ie reviewing responses from the same cohort), scores were closer to those in 2024.
Firms provided the most positive scores for the PRA’s articulation of regulatory objectives and expectations and for the effectiveness of their relationship with the PRA. In particular, firms provided positive comments on the approachability, responsiveness, and professionalism of supervisory teams.
Scores relating to the PRA’s regulatory framework, rules and policy were lower than the other themes surveyed, although this section had a comparatively high number of “neither agree nor disagree” responses.
There was a small difference between Category 1–2 and Category 3–4 responses. As in previous years, higher-impact firms felt that the PRA had a better understanding of their business models and was better at articulating the risks they faced. Lower-impact firms had a positive view of the handling of data requests.
From the comments provided by firms both within the survey and at follow-up meetings, we have identified the following main themes:
- Transparency: firms want unambiguous feedback as well as clarity around the rationale for supervisory work and data requests.
- Improved co-ordination, both between supervision teams and specialists and between the PRA and the FCA and international regulators.
- Proportionality including greater supervisory focus on the main risks faced by firms.
- Timelines: firms want more forward visibility of supervisory workplans and prompter feedback.
Our response
Some of these issues have been raised in earlier years, including in 2024. We continue to seek to address them. SoP1/25 – The Prudential Regulation Authority’s approach to policy, published on 20 February 2025 provides detail on how the PRA is already responding to a number of these issues, including in relation to co-ordination with the FCA and international regulators and handling of data requests. We have also recently updated our PRA-wide governance processes over prudential data. The Future Banking Data project aims to streamline and modernise regulatory collections from banks, drawing on work already carried out between 2021 and 2024 to streamline data collection for insurers. We are continuing to take forward the Strong & Simple initiative to improve the proportionality of prudential regulation: PS20/25 – The Strong and Simple Framework: The simplified capital regime for Small Domestic Deposit Takers (SDDTs) – near-final published in October 2025, set out details of a simplified capital regime.
As set out in the PRA’s approach to supervision of the banking and insurance sectors, all supervisory staff receive regular ongoing training and development to help deliver the PRA’s approach to supervision. Supervisory areas have been reminded of the importance of embedding best practice in their communications with firms including around supervisory work plans, rationales for data requests, and, where appropriate, the PRA’s engagement with other regulators. In 2026, we will also continue to encourage closer co-ordination between the PRA and other parts of the Bank and the FCA.
When should firms expect to receive the 2026 survey?
A survey will be sent to firms in August 2026. Final decisions on the format will be taken in mid-2026. But the core questions will remain similar to those included in the 2025 survey, supplemented by a small number of topical questions.