PS19/25 – Restatement of CRR requirements – 2027 implementation – near-final
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 - Confirms near-final policy on counterparty credit risk and settlement risk as proposed in CP13/24 ECAI Mapping - Amends final policy from PS12/
What You Need To Do
- *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
- *Evaluate mortgage capital treatment
- *Update ECAI mapping processes
- *Establish implementation timeline
- Systems and process updates to reflect restated CRR rules
Key Dates
Compliance Impact
Urgency: HIGH
Who is Affected
Summary
Policy statement 19/25