The Capital Requirements Regulation (Market Risk Transitional Provision) Regulations 2026 published

The Capital Requirements Regulation (Market Risk Transitional Provision) Regulations 2026 (which were made on 29 April) has been published, together with an explanatory memorandum. The Regulations relate to changes to the UK implementation of Basel 3.1. They insert a new Article 465A into the UK Capital Requirements Regulation as a transitional provision relating to the UK Prudential Regulation Authority's (PRA) internal model approach rules. This means that credit institutions and designated investment firms will not be required to apply the PRA's market risk rules on updated internal model requirements during the transitional period between 1 January 2027 and 31 December 2027. The PRA rules will allow institutions to continue to use their existing models during this transitional period until 1 January 2028. The draft version of the Regulations was published in March. The Regulations will come into force on 30 December.

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