On 19 February 2026, HM Treasury (HMT) published a Policy Update Response on the proposed approach to applying the Financial Services and Markets Act 2000 model of regulation to the UK Capital Requirements Regulation (UK CRR). The document summarises responses received to the earlier consultation launched in July 2025 and sets out the government’s final approach in three areas: Basel 3.1 implementation, Overseas Prudential Requirements Regime (OPRR), and key UK CRR definitions which will be restated in legislation.

HMT has also published the following draft regulations:

  • The Capital Requirements Regulation (Amendment) Regulations 2025. These draft transitional regulations will require institutions not to apply specified Prudential Regulation Authority (PRA) rules for the calculation of their market risk capital requirements until after the end of the transitional period on 31 December 2027.

HMT intends to restate existing equivalence decisions made under the UK CRR equivalence regimes so that jurisdictions currently deemed equivalent are treated as designated under the OPRR. It will generally preserve the effects of the current decisions, except regarding exposures to exchanges. HMT has published The Overseas Prudential Requirements Regime (Credit Institutions and Investment Firms) Regulations 2026 whilst at the same time the PRA has published a consultation paper on changes to its final rules to facilitate this legislation. The deadline for comments on the draft regulations and the PRA consultation is 2 April 2026.