UK PRA consults and makes low-impact amendments to PRA rules and policy material

The UK Prudential Regulation Authority (PRA) has published consultation paper LIAC01/25 proposing a series of low-impact amendments to its Rulebook and policy materials. The deadline for comments on the consultation is 2 September. Separately, under LIAF01/25, the PRA has implemented minor corrections to the Solvency II rules and updated Supervisory Statement SS16/16 (on the minimum requirement for own funds and eligible liabilities related to buffers and threshold conditions) to reflect current practices and remove outdated references. These changes, which did not require consultation, will take effect on 24 July.

Key proposals include:

• updating Rule 9.11 of the Internal Capital Adequacy Assessment part of the PRA Rulebook to align interest rate shock scenarios with revised Basel Committee standards dated 16 July 2024. The proposed implementation date is 1 July 2026 and will be enacted through the Draft CRR Firms: Internal Capital Adequacy Assessment Instrument [2025]
• deleting the Benchmarking of the Internal Approaches part of the Rulebook, which has become obsolete post-Brexit—the proposed implementation date is 1 January 2027, aligned with the implementation date of the Basel 3.1 standards. This will be enacted through the Draft Benchmarking of Internal Approaches Amendment Instrument [2025]
• making administrative amends to the definition of "parent undertaking" in the Solvency II Firms Sector and removal of redundant legal references. These changes will be implemented through the Draft Glossary Amendment Instrument [2025].

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