The Prudential Regulation Authority (PRA) has issued final rules and supporting supervisory material to restate the remaining relevant provisions of the UK’s assimilated Capital Requirements Regulation (CRR) within the PRA Rulebook and other PRA policy materials, alongside final amendments to its policy on mapping external credit assessment institution (ECAI) ratings. The package is intended to replace CRR provisions being revoked by HM Treasury, with the PRA’s restated requirements taking effect from 1 January 2027. The final materials include the PRA Rulebook instrument for CRR firms and a corresponding provisions table, new and amended supervisory statements on groups, credit risk (including the internal ratings based approach and definition of default), and securitisation, plus new statements of policy on the PRA’s approach to Internal Model Method permission for counterparty credit risk and to waivers, permissions and certain powers under the securitisation framework. The PRA states there is no substantive difference from the near-final version, with only minor amendments to align with the final Basel 3.1 rules and to reflect the replacement of the CRR definitions of ‘probability of default’, ‘loss given default’ and ‘conversion factor’ with definitions in the PRA Rulebook Glossary. The changes apply to PRA-authorised banks, building societies, PRA-designated investment firms and relevant holding companies (excluding credit unions and third-country branches), while the ECAI mapping policies also apply to UK Solvency II firms, the Society of Lloyd’s and its managing agents, and UK branches of insurers and reinsurers. The PRA confirms the restated policies will take effect on 1 January 2027 and notes that related final policy statements on Basel 3.1 implementation, retiring the refined Pillar 2A methodology, and the Strong and Simple regime for Small Domestic Deposit Takers were published alongside this package.
Prudential Regulation Authority 2026-01-20
Prudential Regulation Authority finalises restatement of remaining UK Capital Requirements Regulation provisions into its Rulebook for 2027
The Prudential Regulation Authority has finalised rules and supervisory materials restating remaining UK assimilated Capital Requirements Regulation provisions into the PRA Rulebook, and final amendments to its policy on mapping external credit assessment institution ratings, effective 1 January 2027. The package, largely mirroring near-final proposals with minor changes to align with Basel 3.1 and updated default-related definitions, applies to PRA-authorised banks, building societies, PRA-designated investment firms and relevant holding companies. Related final policies on Basel 3.1 implementation, Pillar 2A methodology and the Strong and Simple regime for Small Domestic Deposit Takers were published in parallel.