Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether defining non-complex retail financial institutions as Public Interest Entities is in line with (a) HM Treasury's work on proportionate regulation, (b) the Prudential Regulatory Authority's strong and simple work and (c) the Financial Conduct Authority's principles for good regulation.

On 18 March, the Government published a White Paper on ‘Restoring trust in audit and corporate reporting’, which included proposals to extend the definition of public interest entity to bring other large businesses into scope. The White Paper did not propose to remove any entities from the existing definition of public interest entity as these businesses of particular importance to the UK economy, and are subject to more stringent requirements and oversight to reflect this.

The Government is considering the responses to the consultation carefully and will respond in due course. The Government is committed to proportionate regulation. Any future changes will balance the need for entities of public interest to have appropriate regulation, whilst also ensuring regulation is proportionate and not unduly burdensome.