The Prudential Regulation Authority has published a policy statement finalising the transfer of definitions currently contained in Articles 4, 4A, 4B and 5 of the Capital Requirements Regulation into the PRA Rulebook Glossary, alongside consequential amendments across other parts of the Rulebook and changes to Supervisory Statement 15/13 on groups. The final policy largely follows the 2025 consultation without material policy change and is most relevant to PRA-authorised UK banks, building societies, PRA-designated UK investment firms and their qualifying parent undertakings, although some of the glossary changes may be relevant more broadly across the PRA Rulebook. The PRA received three responses, which generally supported moving the definitions into the Rulebook. Final changes made after consultation are mainly drafting and clarification measures. They include consistent italicisation of embedded CRR terms in Glossary definitions, revised wording for the definition of branch to align with the CRR for credit institutions and designated investment firms, added wording in Article 229(3) of the Credit Risk Mitigation Part to clarify the meaning of market value for certain physical collateral, an updated definition of recognised exchange reflecting earlier PRA policy, an updated definition of securitisation to match legislative changes and the PRA's Basel 3.1 rules, and clarifications to some definitions relating to regulatory capital instruments. SS15/13 now includes a new chapter clarifying the PRA's interpretation of maintaining links on a long-term basis for participation, superseding the 2016 durable link statement without material change. The changes take effect on 1 January 2027 alongside the Basel 3.1 package.
Prudential Regulation Authority2026-05-27
Prudential Regulation Authority finalises transfer of CRR definitions into the PRA Rulebook for 1 January 2027
The Prudential Regulation Authority has finalised the transfer of key Capital Requirements Regulation definitions into the PRA Rulebook Glossary, with consequential amendments and updates to Supervisory Statement 15/13 on groups. The policy mainly introduces drafting and clarification changes, including updated definitions of branch, recognised exchange, securitisation and certain regulatory capital instruments, and clarifies market value for some physical collateral. The changes apply to PRA-authorised UK banks, building societies, PRA-designated UK investment firms and their qualifying parent undertakings, and take effect on 1 January 2027 alongside Basel 3.1.