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

AI Analysis

Executive Summary

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.

What Changed

The PRA has restated the remaining relevant provisions in the CRR within the PRA Rulebook and other policy materials, including amendments to supervisory statements and the introduction of new statements of policy. The changes include updates to the securitisation requirements and the introduction of new rules on credit risk and internal ratings-based approaches.

Action Required

  • Review and update internal policies and procedures to ensure compliance with the restated CRR provisions
  • Ensure that risk management practices are aligned with the updated rules on credit risk and internal ratings-based approaches
  • Review and update securitisation policies and procedures to ensure compliance with the amended requirements

Key Dates

1 Jan 2027 The restated CRR provisions take effect DEADLINE

Non-Compliance Risk

Failure to comply with the restated CRR provisions may result in enforcement action, fines, or other regulatory penalties

Who is Affected

PRA-authorised banksBuilding societiesPRA-designated investment firmsPRA-approved or PRA-designated financial or mixed financial holding companiesUK Solvency II firms

Related Regulations

Capital Requirements Regulation (CRR)Basel 3.1Solvency II

Summary

Policy statement 3/26

Relevant Firm Types

BankBroker DealerAsset Manager
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