PS19/25 – Restatement of CRR requirements – 2027 implementation – near-final
AI Analysis
Executive Summary
**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.
What Changed
- The near-final policy confirms and finalizes the following substantive amendments: Securitisation Requirements
- Largely preserves current requirements and supervisory expectations with targeted policy changes
- Introduces a new formulaic p-factor for the standardised approach to securitisation
- Establishes new capital rules for certain mortgage exposures
- Clarifies supervisory expectations for unfunded credit protection in synthetic Significant Risk Transfer (SRT) securitisations by adding expectations to SS9/13 Level of Application of CRR Requirements
- Restates rules relating to level of application with no significant substantive changes
Suggested Considerations
- *Review the final policy statement when published in Q1 2026 to understand specific rule changes applicable to your firm's business model
- *Assess securitisation impacts: If your firm engages in securitisation activities, particularly synthetic SRT structures with unfunded credit protection, evaluate compliance with clarified supervisory expectations in SS9/13
- *Evaluate mortgage capital treatment: Firms with significant mortgage lending should assess impact of new capital rules for certain mortgage exposures
- *Update ECAI mapping processes: Firms relying on external credit assessments must prepare for amendments reflecting Basel 3.1 implementation
- *Establish implementation timeline: Develop a project plan for January 1, 2027 implementation, including:
- Systems and process updates to reflect restated CRR rules
Key Dates
28 October 2025
- PRA published near-final policy statement PS19/25 Q1 2026
- PRA intends to publish final policies and rule instruments alongside or shortly after final Basel 3.1 package publication 1 January 2026
- Implementation date for certain proposals finalized in PS12/25 (limited scope) 1 January 2027
- Implementation date for policies and requirements in PS19/25 (primary implementation date) Compliance Impact
Urgency: HIGH
Who is Affected
References
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Summary
Policy statement 19/25