Principles-Based Regulation (PBR) has become one of the most important approaches in financial services and beyond. Instead of relying on long lists of prescriptive rules, it sets out broad principles that guide behaviour, encourage accountability, and focus on outcomes. In the UK, this model has existed for decades but gained new momentum after the 2008 financial crisis. Regulators argued that detailed rules encouraged a “tick-box” culture, where firms focused on followin

This article explores the key characteristics of Principles-Based Regulation, compares it to rules-based approaches, and examines its benefits, risks, and the critical success factors needed to make it work.