3.11 In line with the existing approach, and to ensure the PRA collects relevant information at a proportionate cost to firms, the PRA proposes to only collect information on firms' material third-party arrangements.

3.12 The PRA proposes to make the following amendments to Notifications Rule 2.3(1)(e):

- amend the scope of the notification requirement that is currently contained in Rule 2.3(1)(e) to capture notifications of firms' material third-party arrangements which, due to the associated risks, necessitates a high degree of due diligence, risk management or governance by the firm and to reflect the PRA's proposals in paragraphs 3.6 to 3.10; and

- decouple Notifications Rule 2.3(1)(e) from Notifications Rule 2.3(1) as a result of the amendment above, because the PRA considers that not all material third-party arrangements may be considered a 'restructuring, reorganisation or business expansion'. This would result in a new proposed Rule 2.3B.