On 15 October 2024, the Prudential Regulation Authority (PRA) published consultation paper CP13/24 – Remainder of CRR: Restatement of assimilated law, which sets out the PRA’s proposals to restate the relevant provisions in the assimilated Capital Requirements Regulation No 575/2013 (CRR) in the PRA Rulebook and other policy material such as supervisory statements and statements of policy. The PRA also proposes to update the credit ratings mapping tables in some assimilated technical standards and to restate them in the PRA Rulebook.
Background
The Financial Services and Markets Act 2023 provides for the revocation and restatement of financial services assimilated law in secondary legislation. The PRA has already restated and amended, or consulted on restatements and amendments of, the CRR, as set out in:
- PS22/21 – Implementation of Basel Standards: Final rules (published in October 2021)
- PS17/23 – Implementation of the Basel 3.1 standards near-final part 1 (published in December 2023)
- PS9/24 – Implementation of the Basel 3.1 standards near-final part 2 (published in September 2024)
- CP8/24 – Definition of Capital: restatement of CRR requirements in PRA Rulebook (published in September 2024)
The FCA’s proposals
HM Treasury has previously stated its intention to revoke the remainder of assimilated law in the CRR, and CP13/24 sets out how the PRA proposes to restate, and in some cases modify, these CRR requirements in the PRA Rulebook and other policy material. The proposals consist primarily of the restatement of assimilated law into PRA rules and policy materials without modifications, although there are a few instances where the PRA proposes to modify certain areas as part of their restatement.
Next steps
The deadline for responses to CP13/24 is 15 January 2025.
With some exceptions, the PRA proposes that the implementation date for the draft PRA rules set out in CP13/24 would be 1 January 2026. In some areas, the PRA proposes to amend certain CRR requirements consequential to the proposed simplification of requirements for small domestic deposit takers (as consulted on in CP7/24) and those requirements would come into effect on 1 January 2027. For the credit ratings mapping tables set out in Chapter 7 of CP13/24, the proposed implementation date for the insurance-related mapping rule changes would be 1 July 2025, and the implementation date for the banking and securitisation mapping rule changes would be 1 January 2026.