Strong and simple in 2026. What SDDTs should do before 31 March

The PRA’s strong and simple framework is part of the UK’s Smarter Regulatory Framework. It is designed for small domestic deposit takers (SDDTs) with simpler business models.

The principle is proportionality. Firms with assets under £20bn and a domestic focus should not face the same complexity as large, internationally active banks. The new regime is intended to reduce burden while maintaining prudential soundness.

The practical point for 2026 is clear. Firms that want to opt into the SDDT regime must notify the PRA by 31 March 2026 to benefit at go live.

Who should pay attention

Start with eligibility assessment. Your notes include key constraints, including the assets threshold, UK exposure concentration, limited trading activity, and restrictions on internal models and certain activities.

Even if you think you qualify, treat this as a project. Eligibility often depends on how exposures are measured and evidenced. A quick check is not enough.

There is also a strategic angle. Some mid tier banks may restructure to qualify. That makes early assessment valuable, especially where group structure or product mix could change.

What changes for reporting teams

Strong and simple is intended to simplify requirements. Your notes highlight relief in areas like the complexity of approaches used, reduced disclosure burden, and lower reporting frequency for some returns.

Even with simplification, delivery still matters. You will still need clear ownership, audit trails, and controls. Supervisors are expecting higher quality data and timelier returns across the sector.

What to do in Q1 2026

Take three steps, without treating this as paperwork.

First, confirm eligibility with evidence. Document the metrics and thresholds you rely on.

Second, map the reporting changes that would apply if you opt in. Identify what templates, cadence, and internal processes would change.

Third, update governance. Simplification does not remove the need for traceability. It changes the scope. Make sure ownership, documentation, and validation are in place.

Why acting early helps

The notification deadline is fixed. If you leave it late, you increase the risk of rushed decisions and rework.

If you act early, you can align strong and simple decisions with broader reporting upgrades in 2026. For some firms, this may sit alongside cloud migration or system upgrades. That coordination matters.

If you want help mapping strong and simple eligibility to practical reporting changes, speak to our team.