UK PRA near-final rules on the restatement of remaining CRR requirements

The UK Prudential Regulation Authority (PRA) has published near-final policy statement PS19/25, setting out its approach to restating remaining provisions of the Capital Requirements Regulation (CRR) into the PRA Rulebook and associated policy materials. This follows the 2024 consultation and complements earlier finalised proposals in the PRA's July policy statement.

The statement is structured into four chapters:

• Chapter 1 – provides an overview, summarises feedback to the consultation and outlines the scope of the near-final rules.
• Chapter 2 – covers amendments to the securitisation requirements, including updates to supervisory statements SS9/13 and SS10/18 and introduces new statements of policy (SoP7/25 and SoP8/25).
• Chapter 3 – covers other CRR provisions including the Groups Part, Credit Risk: Internal Ratings Based Approach Part, Counterparty Credit Risk Part and introduces a new Settlement Risk (CRR) Part of the Rulebook. It also updates supervisory statements SS15/13 and SS4/24 and introduces SoP6/25 on Internal Model Method permissions.
• Chapter 4 – focuses on changes related to the mapping of external credit rating agency ratings to credit quality mapping aligned with Basel 3.1 standards.

Implementation of the near-final rules has been deferred to 1 January 2027 (from the initially proposed date of 1 January 2026) to align with the extended implementation date for Basel 3.1. Final policy materials are expected in Q1 2026, following HM Treasury's revocation of relevant CRR provisions and will apply to PRA-authorised firms, excluding credit unions and third-country branches. Proposed amendments to the strong and simple framework for small domestic deposit takers part of the Rulebook, outlined in the 2024 consultation, have been withdrawn as both regimes now share the same implementation date. To ensure continuity, HM Treasury is expected to legislate to preserve relevant existing CRR permissions, so firms will not need to reapply. The appendices to this near-final policy statement contains the PRA's near-final policy materials. Additional consequential amendments may be made to the near-final rules in appendix 2 to reflect secondary legislation under the Financial Services and Markets Act 2023, including overseas recognition regimes and key UK CRR definitions.

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