The Prudential Regulation Authority (PRA) has published an April 2026 Low Impact Amendments Consultation proposing targeted changes to its Rulebook, a UK technical standard and several statements of policy, largely to clarify existing requirements and keep materials operable ahead of the 1 January 2027 Basel 3.1 and Capital Requirements Regulation (CRR) restatement milestones. For CRR firms, the proposals would (i) amend the Groups Part of the PRA Rulebook to clarify that proportional consolidation applies where a participation arises through voting rights as well as share of capital, and (ii) make consequential changes replacing references to “additional own funds requirements” under the Capital Requirements Regulations 2013 with a defined “Pillar 2A requirement” in specified Rulebook provisions, reflecting HM Treasury’s planned revocation of the relevant regulations from 1 January 2027. The PRA also proposes miscellaneous amendments to the UK Technical Standard on identifying the geographical location of relevant credit exposures for institution-specific countercyclical capital buffer rates, mainly to update cross-references so it continues to work after the Basel 3.1 Credit Risk Rules apply. Separately, the PRA proposes to change the other systemically important institution (O-SII) designation exercise from annual to at least once every two years while retaining the ability to review designations at any time, and to align O-SII buffer scope materials with the Capital Buffers and Macro-prudential Measures Regulations 2025 by adding an additional in-scope category of UK deposit-takers (other than building societies) with more than GBP 35 billion in core deposits and trading assets of less than 10% of Tier 1 capital. For insurers, amendments to SoP1/20 would reduce the update frequency for both the list of “PRA relevant currencies” and the depth, liquidity and transparency assessment underpinning published risk-free term structures to once every three years, with the next updates expected no later than end 2028, alongside a new table of contents. Comments are requested by 21 May 2026. Proposed implementation dates are July 2026 for the Groups Rulebook change, the O-SII scope clarifications and the Solvency II statement of policy changes, 1 November 2026 for the O-SII designation frequency change (with no updated O-SII list intended for 2026 and the next list planned for 2027), and 1 January 2027 for the consequential CRR terminology amendments and the UK technical standard updates.
Prudential Regulation Authority 2026-04-23
Prudential Regulation Authority launches consultation on low impact amendments including biennial O-SII designation exercise and triennial Solvency II technical information updates
The Prudential Regulation Authority has issued an April 2026 Low Impact Amendments Consultation proposing targeted changes to its Rulebook, a UK technical standard and several statements of policy to clarify requirements and maintain operability ahead of the 1 January 2027 Basel 3.1 and Capital Requirements Regulation milestones. Proposals include clarifying proportional consolidation in the Groups Part, defining “Pillar 2A requirement”, updating the UK Technical Standard on geographic allocation of credit exposures, making the other systemically important institution designation at least biennial, expanding the O-SII buffer to certain large UK deposit-takers, and reducing the update frequency for “PRA relevant currencies” and risk-free term structures under SoP1/20 to once every three years.