PRA Policy Updates | Prudential Regulation Authority

March 26th 2026

PS10/26 – Amendments to Resolution Assessment threshold and Recovery Plans review frequency

Policy statement 10/26

AI Analysis

PS10/26 finalizes PRA proposals to raise the Resolution Assessment threshold from £50 billion to £100 billion in retail deposits and reduce recovery plan review frequency for Small Domestic Deposit Takers (SDDTs) from annually to biennially, enhancing proportionality in resolution and recovery frameworks post-financial crisis. These changes reduce regulatory burden on smaller firms while maintaining safety and soundness, directly supporting PRA objectives of competitiveness and growth. Compliance teams must assess scope changes immediately to align reporting and planning cycles.

What Changed

Resolution Assessment Threshold: Increased from £50 billion to £100 billion in retail deposits, limiting reporting and disclosure requirements under the Resolution Assessment Part of the PRA Rulebook to only the largest firms posing systemic risks. Recovery Plans Review Frequency: For SDDTs and SDDT consolidation entities, reduced from at least annually to at least every two years, aiming for higher quality plans with less frequent reviews. Rulebook and Guidance Updates: Amendments to Resolution Assessment Part (Appendix 2), Recovery Plans Part (Appendix 3), and Supervisory Statement SS9/17 –...

What You Need To Do

Scope Assessment
Recovery Plans
Reporting/Disclosure

Key Dates

1 April 2026 - Effective date for PS10/26 changes, including new £100bn threshold and biennial recovery plan reviews for SDDTs .

2 October 2026 - Expected submission date for first Resolution Assessment reports for in-scope firms (as previously communicated by PRA) .

11 June 2027 - Expected publication date for first disclosures under amended threshold .

Compliance Impact

Urgency: High – Effective 1 April 2026 (imminent from March 2026), with first reports due 2 October 2026; firms between £50-100bn retail deposits gain immediate burden relief (exiting scope), while largest firms face no new burdens but must confirm ongoing compliance. Matters due to proportionality aligning with PRA growth objectives, reducing costs for mid-tier banks/building societies amid economic pressures, but requires swift deposit recalibration to avoid inadvertent non-compliance.

References

Sectors:

Banking & Credit

Topics:

Prudential / Capital Requirements Reporting & Disclosure

Bank

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🇬🇧 PRA Policy high

March 26th 2026

PS11/26 – Disclosure: resolvability resources, capital distribution constraints and the basis for firm Pillar 3 disclosure

Policy statement 11/26

AI Analysis

PS11/26 finalizes PRA rules enhancing Pillar 3 disclosures on resolvability resources (MREL), capital distribution constraints (CDCs), and disclosure basis for UK banks and building societies. It matters because it standardizes information to boost market discipline, user comparability, and confidence in orderly resolution, directly impacting financial stability and compliance reporting. No substantive changes from CP16/25 consultation, with minor clarifications only.

What Changed

Standardized MREL disclosure templates: Replaces free-form disclosures with four new templates aligned to Basel BCBS TLAC formats (adapted for UK), expanding scope to more firms for consistency on MREL adequacy. Qualitative CDC narrative: Added to UK CC1 template for firms subject to CDCs, enabling market assessment of restriction impacts; removes obsolete Systemic Risk Buffer (SRB) disclosure post-O-SII buffer replacement. Disclosure basis statement: Firms must specify their Pillar 3 regime (e.g., resolution entity, O-SII, large institution), frequency, and details like reference date,...

What You Need To Do

Update Pillar 3 processes to use new MREL templates (Annex XXVII instructions), UK CC1 with CDC narrative, and basis statement (e
For CDC-subject firms
Ensure semi-annual disclosure of key metrics (Article 447 points a-g) where required
Integrate into consolidated reporting for UK parents; test templates/instructions from appendices
Review for alignment with broader CRR changes (e

Key Dates

17 March 2026 - PS11/26 and accompanying rule instruments (e.g., Disclosure (CRR) Instrument 2026) published.

1 January 2027 - Policy effective date; rules apply from this date.

H1 2027 - First disclosures under new policy published, covering period ending **31 December 2026** (annual/semi-annual as applicable).

Compliance Impact

Urgency: High – Effective 1 January 2027 requires immediate template/system updates for H1 2027 disclosures (year-end 2026 data), with standardized formats limiting flexibility and raising non-compliance risks to market discipline objectives. Impacts reporting teams, resolution planning, and investor relations; proportional design minimizes burden but demands proactive gap analysis given no transition grace beyond effective date.

References

Sectors:

Banking & Credit Capital Markets & Trading Payments & E-Money

Topics:

Prudential / Capital Requirements Reporting & Disclosure

BankBroker DealerAll Firms

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🇬🇧 PRA Policy medium

March 26th 2026

PS9/26 – Resolution planning: Amendments to MREL reporting templates

Policy statement 9/26

AI Analysis

PS9/26 finalizes targeted amendments to MREL reporting templates, including changes to MRL001 and MRL003 data elements and the deletion of MRL002, reducing reporting burdens while maintaining resolution planning oversight. This matters for compliance teams as it streamlines processes under the PRA's Future Banking Data programme, with implementation from 1 January 2027, enabling firms to reallocate resources efficiently.

What Changed

Amendments to data elements in the MREL resources template (MRL001) and MREL debt template (MRL003), with full deletion of the MREL resources forecast template (MRL002). Consequential updates to reporting instructions (Appendix 2) and Supervisory Statement SS19/13 (Appendix 3), including relocation of instrument scope descriptions to reporting instructions for clarity. No changes to quarterly reporting frequency for MRL001/MRL003, despite industry requests for semi-annual alignment, to ensure monitoring of loss-absorbing capacity. PRA to publish updated reporting taxonomy shortly.

What You Need To Do

Review and update internal reporting systems to incorporate revised MRL001/MRL003 templates and deleted MRL002 by 1 January 2027
Implement updated reporting instructions and SS19/13 amendments, including clarified scope of instruments in MRL templates
Prepare for Q4 2026 data submission in February 2027 using new taxonomy (to be published shortly by PRA)
For firms with deleted COREP13 templates, cease submissions from April 2026 cycle
Conduct gap analysis against SS19/13 changes and test processes for quarterly MREL reporting continuity

Key Dates

1 January 2027 - Revised MRL001 and MRL003 templates effective; first submissions of 2026 Q4 data (ending 31 December 2026) due in **February 2027**. DEADLINE

1 April 2026 - Partial revocation of UKTS 2018/1624 (COREP13), deleting certain templates ahead of April 2026 cycle for period ending 31 December 2025.

1 April 2026 - PS10/26 effective (related: Resolution Assessment threshold amendments, reports due 2 October 2026). DEADLINE

1 January 2027 - PS11/26 effective (related: disclosures from 2027 H1 for period ending 31 December 2026).

Compliance Impact

Urgency: Medium – Changes reduce burden (net simplification, ~25% per industry feedback) but require system updates before 1 January 2027 submissions; non-compliance risks resolution planning scrutiny, though lead time mitigates immediate pressure. Matters for maintaining accurate MREL monitoring amid PRA's FBD efficiency drive.

References

Sectors:

Banking & Credit

Topics:

Prudential / Capital Requirements Reporting & Disclosure

Bank

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🇬🇧 PRA Policy high

March 18th 2026

PS7/26 – Operational resilience: Operational incident and third-party reporting

Policy statement 7/26

AI Analysis

PS7/26 finalizes PRA rules for standardized reporting of operational incidents and material third-party (MTP) arrangements, responding to CP17/24 consultation feedback by reducing firm burden through simplified templates and exclusions. This matters for compliance professionals as it enhances PRA oversight of operational resilience risks amid rising threats and third-party reliance, aligning with international standards like DORA and FSB FIRE while supporting identification of critical third parties (CTPs).

What Changed

MTP Reporting: Amended notification rule for clarity; scope excludes credit unions with <£50m assets and all third-country branches; separated register and notification templates with reduced data fields; single submission platform (FCA Connect). Operational Incident Reporting: Merged three-phased reports (initial, interim, final) into one simplified, aligned template across PRA/FCA/Bank; removed fields, made more optional; clarified thresholds (e.g., safety/soundness, financial stability, policyholder protection for PRA), timing, and factors like contagion/reputation via SS1/26. Guidance...

What You Need To Do

Identify and notify MTP arrangements via FCA Connect (excluding exemptions); maintain annual register with reduced fields
Monitor/assess operational incidents against clarified thresholds (e
Update policies per SS1/26 (thresholds) and SS2/21 (MTP identification)
Align reporting with PRA/FCA/Bank templates; use data for resilience prioritization
For insurers

Key Dates

December 2024 - CP17/24 consultation published.

H1 2026 - Final PRA/FCA rules on operational incident and third-party reporting effective (per industry analysis).

30 working days post-incident resolution - Submit final incident report update (extendable to 60 working days in complex cases).

Annual - MTP register reporting (exact date not specified; aligns with notifications).

March 2026 implies rules near/applicable now; implementation likely immediate or phased per PS.)

Compliance Impact

Urgency: High - Mandates new reporting infrastructure and processes amid rising operational threats; non-compliance risks supervisory action on resilience vulnerabilities. Reduced burden from CP mitigates costs, but timely implementation critical for PRA oversight and CTP identification; benefits (e.g., thematic analysis) outweigh costs per PRA.

References

Sectors:

Banking & Credit Insurance & Pensions Capital Markets & Trading

Topics:

Operational Resilience / Outsourcing Reporting & Disclosure Technology & Cyber

BankInsuranceAll Firms

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🇬🇧 PRA Policy high

March 5th 2026

PS6/26 – Recognised exchanges policy and transfer of main indices

Policy statement 6/26

AI Analysis

PS6/26 finalizes the PRA's policy on recognized exchanges (REs) under Article 4(1)(72)(c) of the UK CRR, shifting responsibility to firms for assessing exchange and asset liquidity conditions while restating main indices in the PRA Rulebook and revoking SS20/13. This matters for PRA-regulated firms as it enables more dynamic, risk-sensitive capital treatments for traded assets, potentially expanding eligible REs and supporting competitiveness without PRA pre-approval.

Sectors:

Banking & Credit Capital Markets & Trading

Topics:

Prudential / Capital Requirements

Bank

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🇬🇧 PRA Policy high

February 20th 2026

PS5/26 – Credit Union Service Organisations

Policy statement 5/26

AI Analysis

PRA Policy Statement PS5/26 finalizes rules permitting UK credit unions to invest in Credit Union Service Organisations (CUSOs), expanding from the CP13/25 proposals to foster innovation, collaboration, and growth while managing prudential risks through safeguards like due diligence and investment caps. This matters as it enables credit unions—often smaller mutuals—to access shared services (e.g., HR, IT, compliance) via CUSOs, leveling the playing field against larger competitors and supporting the PRA's safety/soundness and competitiveness objectives.

What Changed

Investment permission and cap increase: Credit unions can now invest in CUSOs using own capital, with the cap raised from 5% to 7.5% of total capital across all CUSOs (clarifications added on practical application, e.g., aggregation). Expanded CUSO scope: CUSOs can now serve other UK-regulated mutuals (with Part 4A permission) beyond just credit unions; partnerships with non-credit unions permitted as owners, subject to safeguards. Supervisory expectations in SS2/23: New chapter requires due diligence, risk analysis, limited liability to investment amount, legal/operational separation,...

What You Need To Do

Review and update policies
Ensure structural safeguards
Governance alignment
Implementation planning
Reporting/oversight

Key Dates

24 October 2025 - Consultation response deadline for CP13/25. DEADLINE

20 February 2026 - Publication date of PS5/26 (final policy).

~20 August 2026 - Implementation deadline for SS2/23 CUSO expectations (six months from PS5/26 publication). DEADLINE

Compliance Impact

Urgency: High – Credit unions eyeing CUSOs for growth (e.g., shared services) must act promptly within the six-month window to avoid supervisory breaches, as this expands opportunities but introduces new prudential risks (e.g., ownership misalignment, capital exposure). Non-compliance risks heightened PRA scrutiny, especially post-PS26/25 mutual sector review; benefits justify costs only for opt-in firms, but proactive preparation ensures safety/soundness.

References

Sectors:

Banking & Credit Consumer Credit Mortgage & Lending

Topics:

Prudential / Capital Requirements Operational Resilience / Outsourcing Authorisation & Licensing

BankFintechAll Firms

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🇬🇧 PRA Policy high

January 20th 2026

PS1/26 – Implementation of Basel 3.1: Final rules

Policy statement 1/26

AI Analysis

PS1/26 represents the UK Prudential Regulation Authority's final implementation framework for the Basel 3.1 international banking standards, effective 1 January 2027 (with market risk internal models delayed to 1 January 2028). This policy statement establishes mandatory capital, credit risk, operational risk, and market risk requirements for UK-regulated banks, building societies, and investment firms, addressing post-financial crisis shortcomings in risk-weighted asset (RWA) calculations and capital adequacy frameworks.

Action Required

The Prudential Regulation Authority (PRA) has published the final rules for the implementation of Basel 3.1 standards in the UK, with an effective date of January 1, 2027. The rules aim to enhance the resilience of banks and improve the stability of the financial system. Firms must review and update their policies and procedures to ensure compliance with the new requirements.

Sectors:

Banking & Credit Capital Markets & Trading Investment Management

Topics:

Prudential / Capital Requirements Reporting & Disclosure Senior Managers / Governance

BankBroker DealerAsset Manager

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🇬🇧 PRA Policy high

January 20th 2026

PS3/26 – Restatement of CRR requirements – 2027 implementation – final

Policy statement 3/26

AI Analysis

PS3/26 is the PRA's final policy statement restating the remaining provisions of the UK Capital Requirements Regulation (CRR) into the PRA Rulebook and related policy materials, effective 1 January 2027. This represents a critical step in the UK's transition away from assimilated EU law, consolidating fragmented regulatory requirements into a unified domestic framework while introducing targeted amendments to securitisation rules and External Credit Assessment Institution (ECAI) mapping.

Action Required

The Prudential Regulation Authority (PRA) has published a policy statement (PS3/26) that restates the remaining relevant provisions in the Capital Requirements Regulation (CRR) within the PRA Rulebook and other policy materials. This change aims to ensure that the PRA's rules and policies are consistent with the UK's withdrawal from the EU. The policy statement is relevant to PRA-authorised banks, building societies, and other financial institutions.

Sectors:

Banking & Credit Capital Markets & Trading Investment Management

Topics:

Prudential / Capital Requirements Reporting & Disclosure Authorisation & Licensing

BankBroker DealerAsset Manager

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🇬🇧 PRA Policy high

January 20th 2026

PS4/26 – The Strong and Simple Framework: The simplified capital regime for Small Domestic Deposit Takers (SDDTs) – final

Policy statement 4/26

AI Analysis

PS4/26 finalizes the **simplified capital regime for Small Domestic Deposit Takers (SDDTs)**, a tailored prudential framework designed to reduce regulatory burden while maintaining capital resilience for smaller, domestically-focused UK banks and building societies. This represents the completion of Phase 1 of the PRA's "Strong and Simple" initiative and introduces materially lighter capital, liquidity, and reporting requirements for qualifying firms, with implementation effective January 1, 2027.

What Changed

*Simplified Capital Framework The final policy introduces a dedicated capital regime** for SDDTs that descopes them from standard CRR Firms requirements. SDDTs are now subject to tailored Pillar 2 methodologies (SoP5/25) and simplified ICAAP/SREP processes (SS4/25) rather than the standard frameworks. *Liquidity Simplifications Qualifying SDDTs with 50% or more retail deposit funding** are exempted from the Net Stable Funding Ratio (NSFR) requirements, replacing this with a simpler Retail Deposit Ratio (RDR) measure.

What You Need To Do

*Immediate (by January 20, 2026)
*Assess SDDT eligibility – Determine whether your firm meets all seven qualification criteria, particularly the £20bn asset threshold and domestic asset location requirement
*Review consolidation group structure – If part of a group, confirm which entity will serve as the SDDT consolidation entity responsible for certification
*Implement SoP2/23 changes – Adopt updated operating procedures for the SDDT regime
*Update ICAAP/ILAAP processes – Implement new frequency requirements for capital and liquidity adequacy assessments

Key Dates

January 20, 2026 – PS4/26 published; changes to SoP2/23 and ICAAP/ILAAP frequency requirements take effect

January 20, 2026 – Revocation of ICR firm/consolidation entity definitions and deletion of SoP3/23 effective

January 1, 2027 – Simplified capital regime for SDDTs takes effect; SS4/25 brought into effect in full; SDDTs removed from SS31/15 scope

Compliance Impact

Urgency: HIGH

References

Action Required

The Prudential Regulation Authority (PRA) has introduced a simplified capital regime for Small Domestic Deposit Takers (SDDTs) to reduce regulatory complexity while maintaining adequate capital. The new regime will take effect on 2027-01-01. This change aims to simplify capital requirements for smaller banks and building societies.

Sectors:

Banking & Credit

Topics:

Prudential / Capital Requirements Reporting & Disclosure Authorisation & Licensing

Bank

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🇬🇧 PRA Policy medium

December 8th 2025

PS27/25 – Future banking data review: Deletion of banking reporting templates

Policy statement 27/25

AI Analysis

PS27/25 finalizes the PRA's policy to delete 37 redundant banking regulatory reporting templates (34 FINREP, 2 COREP, and PRA109) as the first phase of the Future Banking Data (FBD) programme, aiming to reduce reporting burdens while maintaining supervisory data quality. This matters for PRA-regulated banks as it delivers immediate cost savings and signals broader regulatory simplification, aligning with the PRA's secondary competitiveness and growth objective.

What Changed

Deletion of 37 whole reporting templates identified as duplicative, outdated, or low-value: 34 FINREP templates, 2 COREP templates (C05.01 and C05.02, now obsolete), and PRA109. Consolidation of remaining FINREP scoping provisions into a single section of the PRA Rulebook (new Chapters 5A–5F of the Reporting (CRR) Part), with clarifications to unclear or duplicative conditions. Alignment of FINREP remittance deadlines to 30 business days for reports under Article 430(3), Article 11(2), and new Chapters 5A–5F. Updates to Supervisory Statement SS34/15 – Guidelines for completing regulatory...

What You Need To Do

Review and update internal reporting systems, processes, and controls to cease submission of the 37 deleted templates for reference dates from 31 December 2025 onwards
Confirm applicability of consolidated FINREP scoping rules (Chapters 5A–5F) and adjust scoping for remaining templates, incorporating clarified conditions
Assess eligibility for individual FINREP waivers under the updated framework if part of a UK consolidation group; apply to PRA if criteria met (90-95% asset contribution)
Update compliance policies and training to reflect SS34/15 amendments and aligned remittance deadlines
Review Pillar 3 disclosure obligations for any ongoing requirements tied to deleted templates and prepare for potential future changes

Key Dates

8 December 2025 - Publication of PS27/25, finalizing policy and responses to CP21/25 consultation.

31 December 2025 - Effective date for revised rules, amended SS34/15, and deletions; applies to reporting reference dates falling on or after this date (avoids 2025 Q4 submissions where relevant).

11 November 2025 - Q3 2025 remittance deadline (precedes PS publication, so no concession for early non-reporting). DEADLINE

Compliance Impact

Urgency: Medium – Changes are simplificatory (deletions reduce burden), with immediate effect from 31 December 2025, but no new requirements or penalties for non-compliance with deleted items; firms must act promptly to decommission processes and avoid erroneous submissions. This matters as it lowers ongoing costs (especially for larger reporters) and sets precedent for FBD phases targeting further efficiencies, but smaller firms see limited benefit without broader reforms.

References

Sectors:

Banking & Credit

Topics:

Reporting & Disclosure Prudential / Capital Requirements

Bank

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🇬🇧 PRA Policy medium

December 5th 2025

PS26/25 – Discontinuing SS20/15: Supervising building societies’ treasury and lending activities

Policy statement 26/25

AI Analysis

The Prudential Regulation Authority (PRA) has issued PS26/25, finalizing the withdrawal of Supervisory Statement (SS) 20/15, which previously set prescriptive expectations for building societies' treasury and lending activities, effective immediately upon publication on 5 December 2025. This deregulatory move reduces administrative burdens, enhances proportionality across deposit takers, and promotes competition by aligning building societies more closely with banks, while relying on existing tools like the PRA Rulebook, SMCR, and routine supervision for risk management. It matters for compliance teams as it eliminates specific guidance often misinterpreted as binding requirements, freeing firms to tailor risk frameworks but requiring vigilance on broader prudential expectations.

Sectors:

Banking & Credit Mortgage & Lending

Topics:

Prudential / Capital Requirements Senior Managers / Governance

Bank

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🇬🇧 PRA Policy high

December 3rd 2025

PS25/25 – Enhancing banks’ and insurers’ approaches to managing climate-related risks – Update to SS3/19

Policy statement 25/25

AI Analysis

PS25/25 is the PRA's policy statement providing feedback on CP10/25 and issuing updated Supervisory Statement SS5/25, which replaces SS3/19 to enhance banks' and insurers' management of climate-related financial risks through strengthened governance, risk management, scenario analysis, data quality, and disclosures. It matters because it sets a higher regulatory bar for embedding climate risks proportionately into core processes like ICAAP, ILAAP, ORSA, and financial reporting, promoting resilience and strategic decision-making amid evolving climate threats.

What Changed

The main changes in SS5/25 from SS3/19 and CP10/25 responses include: Proportionate application clarification: New 'Overarching aims' section in Chapter 3 explains how firms should tailor expectations to their climate risk exposure, business size, and complexity via a two-step process (assess materiality, then respond). Governance strengthening: Boards and senior management must actively oversee climate risks, embedding them in strategy and ensuring accountability. Risk management enhancements: Integrate climate risks into existing frameworks/risk registers (supplementary sub-registers...

What You Need To Do

Conduct gap analysis against SS5/25 within 6 months and remediate (e
Integrate climate risks into board oversight, strategy, risk registers, ICAAP/ILAAP (banks), ORSA/stress testing (insurers), and financial reporting
Perform CSA exercises commensurate with exposures, using suitable scenarios to inform decisions; enhance data quality and disclosures
Document proportionate application (two-step process: materiality assessment, risk response); leverage existing structures where robust
Ensure senior accountability and alignment with standards like SS1/21

Key Dates

3 December 2025 - PS25/25 and SS5/25 published; SS5/25 effective immediately, replacing SS3/19.

Within 6 months (by ~June 2026) - Firms assess gaps against new expectations and develop remediation plans (industry guidance).

Ongoing - Forward-looking, strategic implementation proportionate to risks; PRA may request progress evidence.

Compliance Impact

Urgency: High – Effective immediately (3 Dec 2025), requiring significant uplift to existing approaches; non-compliance risks supervisory scrutiny, as PRA expects ambitious, ongoing progress and may request evidence. Matters for capital/liquidity planning, resilience, and strategic viability amid maturing climate risk landscape.

References

Sectors:

Banking & Credit Insurance & Pensions

Topics:

Prudential / Capital Requirements ESG Senior Managers / Governance

BankInsurance

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🇬🇧 PRA Policy high

November 27th 2025

PS23/25 – Margin requirements for non-centrally cleared derivatives: Amendments to BTS 2016/2251

Policy statement 23/25

AI Analysis

PS23/25 from the PRA and FCA finalizes amendments to Binding Technical Standards (BTS) 2016/2251 under UK EMIR, introducing an indefinite exemption for single-stock equity options and index options from bilateral margin requirements, removing IM obligations on legacy contracts for firms falling below thresholds, and allowing alignment with third-country jurisdictions' timelines for IM assessments. These changes reduce operational burdens and enhance competitiveness for UK firms trading non-centrally cleared derivatives, following feedback from CP5/25, while maintaining prudential standards.

What Changed

Indefinite exemption for equity options: Single-stock equity options and index options are permanently exempted from UK bilateral initial margin (IM) and variation margin (VM) requirements, replacing a temporary exemption ending 4 January 2026. This balances safety with international competitiveness, as capital can substitute for margin. Legacy contracts relief: Firms falling below the Average Aggregate Notional Amount (AANA) threshold no longer need to exchange IM on outstanding legacy non-centrally cleared derivatives contracts. Third-country alignment: UK firms can adopt another...

What You Need To Do

Assess cross-border transactions
Conduct gap analysis on margin calculations, collateral management, and reporting; train front-to-back office teams on changes
Retain records of AANA calculations and threshold monitoring to justify exemptions or relief
For firms with collected IM on now-exempt legacy positions, evaluate release options per updated FCA instrument language

Key Dates

11 August 2025 PRA submits final technical standards instrument to HM Treasury (HMT).

15 August 2025 FCA submits final technical standards instrument to HMT.

11 September 2025 HMT deems approval of PRA’s instrument.

24 September 2025 HMT deems approval of FCA’s instrument.

27 November 2025 Amendments to BTS 2016/2251 effective date.

Compliance Impact

Urgency: High – Effective immediately since 27 November 2025 (over a month ago as of current date), firms risk non-compliance if systems still enforce outdated IM/VM for exemptions; operational fixes are needed urgently to avoid breaches, fines, or disputes, especially with phase-out of temporary equity options relief approaching 4 January 2026. Impacts cost savings but requires swift policy recalibration for ongoing UK EMIR adherence.

References

Sectors:

Banking & Credit Capital Markets & Trading Investment Management

Topics:

Prudential / Capital Requirements Reporting & Disclosure

BankBroker DealerAsset Manager

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🇬🇧 PRA Policy high

November 18th 2025

PS24/25 – Depositor protection

Policy statement 24/25

AI Analysis

The PRA's PS24/25 finalizes rules increasing Financial Services Compensation Scheme (FSCS) depositor protection limits from £85,000 to £120,000 and temporary high balances (THB) from £1 million to £1.4 million for firm failures on or after 1 December 2025, responding to consultation feedback in CP4/25. This matters for PRA-authorized deposit-takers as it enhances consumer protection amid inflation but requires urgent system and disclosure updates to avoid FSCS payout delays or regulatory breaches. Firms must prioritize single customer view (SCV) readiness and phased disclosure revisions to comply efficiently.

What Changed

Increased Protection Limits: Standard FSCS deposit limit rises from £85,000 to £120,000; THB limit from £1 million to £1.4 million, applying to failures from 1 December 2025. SCV System Updates: Firms must update SCV systems (used by FSCS for rapid compensation) to reflect new limits from 1 December 2025, including accurate contact details. Disclosure Materials: - Update information sheets on FSCS cover to reflect new limits and improve clarity/accessibility; provide to depositors as soon as practicable post-1 December 2025, by 31 May 2026. - Revise compensation stickers/posters (for...

What You Need To Do

Immediate (pre-1 Dec 2025)
By 1 Dec 2025
Post-1 Dec 2025 to 31 May 2026
Document changes for audit trails; consider regtech for SCV automation

Key Dates

1 December 2025 - New deposit (£120,000) and THB (£1.4 million) limits apply to firm failures on/after this date; SCV systems must be updated; SS18/15 and SoP1/15 effective. DEADLINE

As soon as practicable after 1 December 2025 - Provide updated information sheets, stickers/posters, and exclusions lists to depositors (encouraged immediately to avoid confusion).

31 May 2026 - Firm deadline for all disclosure material updates and provision to depositors (six-month transition ends). DEADLINE

Compliance Impact

Urgency: High – SCV updates are mandatory by 1 December 2025 with no transition, risking delayed FSCS payouts and enforcement if unprepared; disclosure changes allow six months but PRA emphasizes early action to prevent depositor confusion. Impacts operational resilience and conduct risk; non-compliance could trigger supervisory action, especially for firms with outdated systems. Cost-benefit analysis shows minimal PRA impact but higher potential FSCS payouts in failures.

References

Sectors:

Banking & Credit

Topics:

Consumer Protection / Conduct Prudential / Capital Requirements

Bank

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🇬🇧 PRA Policy high

November 12th 2025

PS22/25 – Leverage Ratio: Changes to the retail deposits threshold for application of the requirement

Policy statement 22/25

AI Analysis

The PRA's PS22/25 finalizes an increase in the retail deposits threshold for the leverage ratio requirement from £50 billion to £75 billion, introducing a three-year averaging mechanism for calculations, effective 1 January 2026. This adjustment reflects nominal UK GDP growth since 2016 to maintain the Financial Policy Committee's original risk appetite while smoothing cliff-edge effects for firms like building societies. It matters for major UK banks and similar firms as it alters capital planning and leverage ratio applicability, potentially reducing immediate compliance burdens for those nearing the old threshold.

What Changed

Retail deposits threshold raised from £50 billion to £75 billion, adjusted upward from the CP2/25 proposal of £70 billion to account for further GDP growth to Q2 2025 (rounded to nearest £5 billion). Introduction of a three-year moving average for calculating retail deposits metric, replacing point-in-time values to mitigate volatility and aid capital planning, particularly for building societies. Non-UK assets threshold remains unchanged at £10 billion. Modifications by consent disapplying leverage ratio rules during review will cease on 30 June 2026. These changes are implemented via...

What You Need To Do

Review and update internal retail deposits calculations to incorporate three-year moving average methodology starting 1 January 2026
Assess current and projected retail deposits against £75 billion threshold (and £10 billion non-UK assets) to determine leverage ratio applicability and adjust capital planning accordingly
Prepare to meet 3
For firms with modifications by consent
Update governance, risk models, and board reporting to reflect changes; conduct gap analysis against PRA Rulebook appendices in PS22/25

Key Dates

5 March 2025 - PRA publishes Consultation Paper CP2/25 proposing £70 billion threshold.

5 June 2025 - Consultation response deadline. DEADLINE

12 November 2025 - PRA issues PS22/25 with final policy.

1 January 2026 - Final policy takes effect, applying new £75 billion threshold and three-year averaging.

30 June 2026 - Cessation of modifications by consent disapplying leverage ratio rules.

Compliance Impact

Urgency: High – With effectiveness just after today (1 January 2026), firms near £50-75 billion in retail deposits face immediate recalibration of leverage exposures and capital buffers to avoid breaches, amplified by the shift to averaging which requires historical data reconstruction. Non-compliance risks PRA enforcement, heightened scrutiny, or capital inadequacy findings, but the higher threshold and averaging provide planning relief versus the status quo.

References

Sectors:

Banking & Credit Payments & E-Money Mortgage & Lending

Topics:

Prudential / Capital Requirements

BankPayment ProviderAll Firms

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🇬🇧 PRA Policy high

October 28th 2025

PS19/25 – Restatement of CRR requirements – 2027 implementation – near-final

Policy statement 19/25

AI Analysis

**PS19/25** is the PRA's near-final policy statement finalizing how remaining Capital Requirements Regulation (CRR) provisions will be restated into the PRA Rulebook, effective January 1, 2027. This represents a critical step in the UK's transition away from assimilated EU law, giving the PRA expanded rule-making authority over UK banks, building societies, and investment firms while introducing targeted policy changes to securitisation, credit risk treatment, and ECAI mapping.

Sectors:

Banking & Credit Capital Markets & Trading

Topics:

Prudential / Capital Requirements Reporting & Disclosure

BankBroker Dealer

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🇬🇧 PRA Policy high

October 28th 2025

PS20/25 – The Strong and Simple Framework: The simplified capital regime for Small Domestic Deposit Takers (SDDTs) – near-final

Policy Statement 20/25

AI Analysis

**PS20/25** represents the second and final phase of the PRA's "Strong and Simple Framework," establishing a significantly simplified capital regime for Small Domestic Deposit Takers (SDDTs) while maintaining their resilience. This near-final policy statement, published on 28 October 2025, fundamentally restructures capital requirements, liquidity rules, and operational frameworks for SDDTs—a critical development for smaller deposit-taking institutions seeking regulatory relief from disproportionate compliance burdens.

What Changed

The simplified capital regime introduces structural changes across all three pillars of capital requirements: *Pillar 1 (Risk-Weighted Assets) SDDTs must apply Basel 3.1 standardised approaches for credit risk and operational risk, with specific simplifications. Due diligence requirements in the standardised approach to credit risk are disapplied for SDDTs. Counterparty credit risk (CCR) for derivatives and credit valuation adjustment (CVA) risk are disapplied (with minor exceptions). Market risk framework is simplified, with SDDTs applying the credit risk approach to trading book positions...

What You Need To Do

*For SDDTs Currently Operating or Considering Entry:
*Notification Decision – Determine whether to enter the SDDT regime and submit notification to the PRA by 31 March 2026 if seeking to benefit from simplified rules
*Policy Review – Conduct comprehensive review of PS20/25, related policy statements (PS18/25, PS19/25, PS8/25, PS14/25), and supporting methodologies (SoP5/25, SS4/25, amendments to SoP2/23)
*Capital Calculation Transition – Prepare systems and processes to transition from current capital calculation methodologies to Basel 3
Removal of CCR and CVA calculations for derivatives

Key Dates

31 March 2026 – Deadline for firms wishing to enter the SDDT regime to notify the PRA and benefit from the simplified framework at implementation. DEADLINE

1 January 2027 – Implementation date for the simplified capital regime for SDDTs; the Interim Capital Regime will no longer apply.

2026 (specific date TBD) – PRA to make final rules and policy covering the entire Basel 3.1 package once HM Treasury makes commencement regulations to revoke relevant CRR provisions.

2027 (specific date TBD) – PRA to implement restatement of CRR requirements (PS19/25).

Compliance Impact

Urgency Rating: HIGH

References

Sectors:

Banking & Credit Payments & E-Money

Topics:

Prudential / Capital Requirements Authorisation & Licensing Reporting & Disclosure

Bank

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🇬🇧 PRA Policy high

October 23rd 2025

PS17/25 – Matching Adjustment Investment Accelerator

Policy statement 17/25

AI Analysis

PS17/25 establishes the **Matching Adjustment Investment Accelerator (MAIA) framework**, enabling PRA-regulated insurers to regularize and expand their use of matching adjustment (MA) in calculating capital requirements for certain long-duration insurance liabilities. This framework is significant because it provides a structured pathway for firms to optimize capital efficiency while maintaining prudential safeguards through exposure limits, eligibility assessments, and breach remediation mechanisms.

Sectors:

Insurance & Pensions Capital Markets & Trading

Topics:

Prudential / Capital Requirements Reporting & Disclosure Operational Resilience / Outsourcing

Insurance

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🇬🇧 PRA Policy high

October 15th 2025

PS21/25 – Remuneration Reform

Policy statement 21/25

AI Analysis

PS21/25 implements reforms to PRA remuneration rules for banks, building societies, and PRA-designated investment firms, simplifying Material Risk Taker (MRT) identification, aligning deferral periods with international standards (4 years for non-SMF MRTs and 5 years for SMFs), and enhancing links to individual accountability under the Senior Managers Regime (SMR). These changes matter as they reduce regulatory burden, increase flexibility in bonus structures (e.g., marginal deferral rates and cash payments), and promote competitiveness while maintaining risk alignment, potentially reversing trends toward higher fixed pay.

What Changed

MRT Identification: Simplified quantitative threshold to the top 0.3% of earners (assessed against risk impact); qualitative criteria unchanged; raised proportionality threshold for disapplying rules from £44,000 variable pay to £660,000 total pay (with variable pay ≤33% of total); reintroduced exemption for MRTs serving <3 months. Deferral Periods: 4-year minimum for non-SMF MRTs (previously varied); reduced to 5 years for SMFs (from 7 years); aligns with FCA and international practice. Deferral Rates: Marginal system—40% deferral on first £660,000 of variable remuneration, 60% above;...

What You Need To Do

Review and update MRT identification processes, applying simplified top 0
Revise remuneration policies for deferral (4/5 years, marginal rates), upfront cash flexibility, and instrument expectations; update bonus award calculations
Embed SMR-linked adjustments
For dual-regulated firms
Optional early adoption for specified changes on 2025/unvested awards; document governance for RemCo approvals and board policies

Key Dates

15 October 2025 Publication date; some changes (e.g., deferral periods, pro-rata vesting) may apply to ongoing 2025 performance year and unvested prior awards at firm discretion.

16 October 2025 Final rules and updated SS2/17 take effect; apply to performance years starting after this date (e.g., mandatory from 1 January 2026 for calendar-year firms).

November 2024 Preceding joint consultation (CP16/24/PRA, CP24/23/FCA) closed prior to PS.

Compliance Impact

Urgency: High – Mandatory from performance years post-16 October 2025 (e.g., 2026 for most), with immediate opt-in possible; impacts 2026 bonus cycles, requiring swift policy rewrites amid year-end planning. Matters due to simplified but ownership-heavy MRT processes, SMR-pay linkages raising accountability risks, and flexibility needing robust justification to avoid supervisory challenge; non-compliance risks enforcement under PRA accountability regimes.

References

Sectors:

Banking & Credit Capital Markets & Trading Investment Management

Topics:

Senior Managers / Governance Prudential / Capital Requirements Reporting & Disclosure

BankAsset ManagerAll Firms

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🇬🇧 PRA Policy high

October 9th 2025

PS16/25 – Markets in Financial Instruments Directive Organisational Regulation (MiFID Org Reg)

Policy statement 16/25

AI Analysis

PS16/25 is the PRA's policy statement restating firm-facing organisational requirements from the MiFID Org Reg (e.g., outsourcing, record-keeping, risk management, compliance, internal audit, and governance) into the PRA Rulebook, with no material changes, to align with HMT's revocation of the EU regulation under FSMA 2023. This matters because it ensures continuity of prudential oversight for PRA-authorised firms post-revocation, preventing enforcement gaps in systems and controls while adapting provisions (e.g., supervisory function) to UK governance structures.

What Changed

Restatement of requirements: Provisions from MiFID Org Reg Articles on outsourcing, record-keeping, control procedures, risk management, compliance, internal audit, and governance are transferred verbatim or with minor clarifications into PRA Rulebook parts (e.g., Risk Control). Supervisory function adjustment: Following consultation feedback, PRA retained Article 25 provisions but substituted "governing body" for "supervisory function" to fit UK firm structures, preserving board-level oversight without substantive change. Technical standards update: Minor amendment to algorithmic trading...

What You Need To Do

Review and map existing MiFID Org Reg compliance processes against restated PRA Rulebook provisions (e
Confirm governing body oversight aligns with adapted Article 25 requirements; document any adjustments for UK structures
Update internal references in algorithmic trading governance documents to new rule 2
Conduct gap analysis and training on minor clarifications; prepare for dual FCA/PRA alignment if applicable
Monitor HMT commencement order; if delayed, reassess implementation plans

Key Dates

9 October 2025 - PRA publishes PS16/25 with final rules and feedback to CP9/25 consultation.

23 October 2025 - New PRA rules and technical standards come into force, coinciding with HMT's anticipated revocation of MiFID Org Reg via commencement order (FCA rules align on same date).

Prior to 23 October 2025 - HMT expected to lay second Statutory Instrument revoking remaining MiFID Org Reg provisions; PRA may delay/revoke rules if not made.

Compliance Impact

Urgency: High – Firms must act promptly as rules take effect on 23 October 2025 (past deadline as of current date), with no transition period; non-compliance risks enforcement gaps in core systems/controls post-revocation. Impact is low for substance (restatement only) but requires documentation updates to avoid supervisory scrutiny, especially for governance and outsourcing.

References

Sectors:

Banking & Credit Capital Markets & Trading Investment Management

Topics:

Operational Resilience / Outsourcing Senior Managers / Governance Reporting & Disclosure

BankBroker DealerAll Firms

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🇬🇧 PRA Policy high

September 30th 2025

PS15/25 – Closing liquidity reporting gaps and streamlining Standard Formula reporting

Policy statement 15/25

AI Analysis

PS15/25 introduces **new liquidity risk reporting requirements for major UK insurance firms**, closing data gaps identified during the March 2020 "dash for cash" and September 2022 LDI crisis. The policy mandates four new reporting templates for firms with significant derivatives or securities lending exposure, with implementation deferred to **30 September 2026** to allow adequate preparation time.

Sectors:

Insurance & Pensions

Topics:

Prudential / Capital Requirements Reporting & Disclosure Operational Resilience / Outsourcing

Insurance

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