On 24 April 2025, the Financial Conduct Authority (FCA) published a consultation paper, CP25/10, on the definition of capital for FCA investment firms.
Background
The UK Capital Requirements Regulation (UK CRR) currently forms part of assimilated UK law. However, the FCA considers many of these requirements to be unnecessarily complex
On 17 April 2025, the Prudential Regulation Authority (PRA) updated its webpage on stress testing to note that it has published two stress test scenarios for use by banks and building societies that are not participants in the Bank of England’s concurrent stress testing exercise.
The PRA explains that the scenarios are derived
On 17 April 2025, the Prudential Regulation Authority (PRA) published an update on a modification by consent of the Liquidity Coverage Ratio (CRR) Part of the PRA Rulebook in relation to third country covered bonds.
The PRA had previously, on 8 April 2025, offered a modification by consent that would allow certain third
On 11 April 2025, the Prudential Regulation Authority (PRA) announced that it was offering a modification by consent (MbC) to modify Article 11 (1)(d)(ii) of the Liquidity Coverage Ratio part of the PRA Rulebook.
The MbC allows a firm that has incorrectly applied a rule regarding third country covered bonds’ inclusion
On 28 March 2025, the Financial Policy Committee (FPC) issued a consultation paper setting out proposals intended to ensure that the other systemically important institutions (O-SII) buffer continues to address financial stability risks in line with the FPC’s risk appetite, as set out in its framework, while also avoiding any undue
On 24 March 2025, the Bank of England (BoE) launched its 2025 Bank Capital Stress Test (the Stress Test), which seeks to assess the resilience of the UK banking system to deep simultaneous recessions in the UK and global economies, large falls in asset prices, higher global interest rates, and a stressed
On 10 March 2025, the Financial Conduct Authority (FCA) published the findings from its multi-firm review of liquidity risk management at wholesale trading firms.
Background
The FCA notes that, over the past few years, it has engaged with firms that had experienced instantaneous and firm-specific liquidity shocks during stress events such as