pc
nid 93983
Jul 14, 2026
csoo@vixio.com
United Kingdom
Bank of England
financial services
97% of draft length
draft in Generated
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2104 charsUnited Kingdom Prudential Regulation Authority Finalises Rule Changes for Overseas Prudential Requirements Regime
On July 14, 2026, the Prudential Regulation Authority (PRA) published policy statement PS16/26, finalising rule changes to accommodate HM Treasury's Overseas Prudential Requirements Regime (OPRR). The policy statement provides feedback on consultation paper CP3/26 and sets out the PRA's final policy amendments to multiple parts of the PRA Rulebook, including Credit Risk, Large Exposures, Market Risk, Settlement Risk, and Reporting provisions.
The amendments apply to PRA-authorised UK banks, building societies, PRA-designated UK investment firms, and their qualifying parent undertakings. The PRA received one joint response to the consultation, which generally welcomed the proposals but sought clarifications on several technical matters. In response, the PRA made targeted clarificatory changes to enhance rulebook accessibility and operationalisation. Notably, the PRA renamed a proposed Glossary term from "exposures to institutions" to "exposures to Article 119 institutions" to improve readability and distinguish between different meanings of the term. The PRA also introduced a Part-specific defined term "relevant exposures to Article 119 institutions" in the Large Exposures section to carve out exposures to exchanges from relevant rules.
The PRA declined to amend its rules prohibiting the use of credit assessments incorporating implicit government support assumptions when assigning risk weights to institutions under the standardised approach. The PRA also clarified that firms must undertake appropriate due diligence to determine whether conditions for applying overseas public sector entity treatments are met, and confirmed that changes to the composition of relevant credit exposures will not require recalculation of previous figures for Small Domestic Deposit Taker regime eligibility purposes.
The new rules take effect on January 1, 2027, alongside the PRA's implementation of Basel 3.1 standards. Implementation depends on the Overseas Prudential Requirements Regime (Credit Institutions and Investment Firms) Regulations 2026 being made and in force prior to that date.
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2049 charsUK's Prudential Regulation Authority Finalises Rule Changes for Overseas Prudential Requirements Regime
On July 14, 2026, the Prudential Regulation Authority (PRA) published policy statement PS16/26, finalising rule changes to accommodate HM Treasury's Overseas Prudential Requirements Regime (OPRR).
The policy statement provides feedback on consultation paper CP3/26 and sets out the PRA's final policy amendments to multiple parts of the PRA Rulebook, including Credit Risk, Large Exposures, Market Risk, Settlement Risk, and Reporting provisions.
Having considered the response to CP3/26, the PRA has made the following changes:
Clarificatory changes to the draft policy material where it considers this to be appropriate, as set out in Chapter 2
Further minor changes to Statement of Policy (SoP) 5/15 and introduced amendments to SoP5/25 , Supervisory Statement (SS) 31/15 and SS4/25 .
Amended the instructions for FSA076 Pillar 2 Credit risk standardised approach (SA) and updated the cross-reference to these instructions in SS32/15 . These changes are intended to reflect the introduction of the OPRR and the revocation of the CRR.
Further minor corrections to SoP5/25 .
These changes are not expected to have a different impact on firms (including mutuals) compared to the rules in CP3/26, other than to make it easier for firms to interpret the rules. The PRA therefore considers that these changes are not ‘significant’.
As set out in CP3/26, the PRA retains its intention to consider its approach to updating references to broader reporting and disclosure instructions alongside any broader changes that may need to be made to reflect the restatement of CRR provisions in the PRA Rulebook in due course.
The amendments apply to PRA-authorised UK banks, building societies, PRA-designated UK investment firms, and their qualifying parent undertakings.
The new rules take effect on January 1, 2027, alongside the PRA's implementation of Basel 3.1 standards. Implementation depends on the Overseas Prudential Requirements Regime (Credit Institutions and Investment Firms) Regulations 2026 being made and in force prior to that date.