The Prudential Regulation Authority (PRA) has published a consultation proposing targeted changes to minimum requirement for own funds and eligible liabilities (MREL) reporting to align firms’ submissions with the Bank of England’s revised approach to setting MREL and to remove duplicative or obsolete data requests. The package would consolidate and clarify the MREL reporting framework, with the PRA assessing an overall net reduction in reporting burden. The proposals apply to UK banks, building societies, PRA-designated investment firms and qualifying parent undertakings subject to the PRA Rulebook’s Resolution Pack requirements, and are particularly relevant where firms are set or likely to be set external and or internal MREL above minimum capital requirements (MCR) and or where the Bank has notified a firm that its preferred resolution strategy uses stabilisation powers. Key changes include amending the MREL resources template (MRL001) and MREL debt template (MRL003), fully deleting the MREL resources forecast template (MRL002), and updating reporting instructions and Supervisory Statement 19/13. Under the revised MREL statement of policy, firms with a transfer strategy are expected to be set MREL equal to MCR, so they would no longer be expected to submit MRL001 but would continue to submit MRL003 to support write-down and conversion and mandatory reduction powers. The consultation keeps reporting frequency and submission dates aligned with quarterly COREP C 01.00, with no change to submission via the Bank’s Electronic Data Submissions portal or XBRL format. The PRA estimates an aggregate present value net benefit to firms of around GBP 1.1 million and one-off implementation costs for the PRA of around GBP 162,000. Responses are requested by 31 October 2025. Subject to finalisation, the PRA proposes the revised MREL reporting policy would take effect on 1 January 2027, with firms submitting fourth quarter 2026 data during February 2027, and firms having at least six months from publication of the final policy to implement the changes. The Bank has also indicated it intends to consult in the future on COREP13 reporting changes, including potentially revoking four COREP13 templates, with some related data elements to be consolidated into the updated MREL templates.
Prudential Regulation Authority 2025-07-15
Prudential Regulation Authority launches consultation to streamline MREL reporting templates and delete the MREL resources forecast template
The Prudential Regulation Authority (PRA) has issued a consultation on proposed changes to minimum requirement for own funds and eligible liabilities (MREL) reporting, aiming to align submissions with the Bank of England's revised MREL approach and eliminate redundant data requests. The changes include amendments to MREL templates and reporting instructions, with an estimated net benefit to firms of GBP 1.1 million. The revised policy is expected to take effect on 1 January 2027.