On 19 February 2026, the Prudential Regulation Authority (PRA) published Consultation Paper 3/26 (CP3/26), which sets out proposed rule changes intended to accommodate HM Treasury’s Overseas Prudential Requirements Regime (OPRR).
Background
The OPRR has been designed to restate, with modifications, a number of existing Capital Requirements Regulation (CRR) equivalence provisions in legislation. HM Treasury consulted on the creation of the OPRR in July 2025 and published its response to the consultation alongside the draft Overseas Prudential Requirements Regime (Credit Institutions and Investment Firms) Regulations 2026 on 19 February 2026.
Key proposals
The PRA’s proposals are intended to ensure that the PRA’s Rulebook would remain aligned with HM Treasury’s reforms to the UK’s approach to recognising other jurisdictions’ regulatory frameworks. The PRA further explains that the expected impact on firms from these proposals is minimal, and no material costs are anticipated.
The PRA’s proposals to make amendments to the PRA Rulebook to reflect the implementation of OPRR in relation to credit risk include changes to provisions on exposures to institutions; exposures in the form of eligible covered bonds; exposures to central governments or central banks, regional governments or local authorities, and public sector entities; exposures to Gibraltarian entities; and, large exposures.
The proposals in this CP would also result in a minor change to statement of policy (SoP) 5/15 – The PRA’s methodologies for setting Pillar 2 capital.
Next steps
The deadline for comments on CP3/26 is 2 April 2026.
The PRA proposes that changes resulting from this CP would become effective alongside the Basel 3.1 package on Friday 1 January 2027.