pc
nid 91511
Mar 26, 2026
reprocess@vixio.com
United Kingdom
Bank of England
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1980 charsUnited Kingdom's Prudential Regulation Authority Finalises Pillar 3 Disclosure Requirements for Resolvability Resources and Capital Distribution Constraints
On 26 March 2026, the Prudential Regulation Authority (PRA) published Policy Statement 11/26 (PS11/26), finalising proposals on Pillar 3 disclosure requirements for resolvability resources, capital distribution constraints, and the basis for firm Pillar 3 disclosures.
The PRA identified gaps in market participants' understanding of firms' Minimum Requirements for Own Funds and Eligible Liabilities (MREL) resources and the impact of Capital Distribution Constraints (CDCs). PS11/26 introduces standardised MREL disclosure templates aligned with Basel Committee on Banking Supervision Total Loss Absorbing Capacity formats but adapted for the UK, replacing current free-form disclosures. The policy expands disclosure scope to mid-tier MREL firms and introduces a qualitative CDC narrative requirement within the existing UK CC1 template. Additionally, firms must now disclose the basis upon which their Pillar 3 disclosures are prepared. The PRA also removed the Systemic Risk Buffer disclosure requirement, reflecting its replacement by the Other Systemically Important Institution (O-SII) buffer in December 2020. The policy applies proportionately across different firm types, with mid-tier MREL firms required to disclose the UK KM2 template annually, compared with quarterly disclosure for Article 92a and O-SII firms.
The PRA received two consultation responses, with respondents generally welcoming the proposals. The PRA made no substantive policy changes but clarified technical aspects, including that CDC disclosures do not require firms to reveal confidential supervisory information such as Pillar 2B buffers. The implementation date for all requirements is 1 January 2027, with the first reference date for the period ending 31 December 2026. The first set of disclosures under the new templates will be published in H1 2027. This policy applies to PRA-authorised banks and building societies, PRA-designated UK investment firms, and CRR consolidation entities.
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1598 charsUK's Prudential Regulation Authority Publishes Policy Statement on Pillar Three Disclosures
On March 26, 2026, the Prudential Regulation Authority (PRA) published a policy statement (PS11/26), finalising changes to provide greater clarity for users on which Pillar 3 disclosure regime applies to a given firm.
This policy statement (PS) follows consultation paper (CP)16/25 , and finalises the following:
Introduction of standardised Minimum Requirements for Own Funds and Eligible Liabilities (MREL) disclosure templates, aligned with the Basel Committee's total loss absorbing capacity (TLAC) formats but adapted for the UK. These templates replace current free-form disclosures and expand the scope of firms required to disclose.
Increased transparency and consistency of firms’ disclosure on MREL resources.
Introduction of a new qualitative disclosure requirement for firms subject to capital distribution constraints (CDCs) to allow for more meaningful assessment by market participants of the likely impact of those capital distribution restrictions. Alongside the removal of the systemic risk buffer (SRB) disclosure requirement to ensure consistency with the current capital buffer framework.
Introduction of a new disclosure requirement to increase clarity about the basis upon which firms are required to produce Pillar 3 disclosures to improve user understanding.
A set of minor amendments to disclosure and reporting to reflect HM Treasury’s (HMT) intention to revoke Article 92a of the onshored Capital Requirements Regulation (CRR).
The implementation date for all requirements is January 1, 2027, with a first reference date for the period ending December 31, 2026.