On 28 October 2025, the Prudential Regulation Authority (PRA) published a near final policy statement (PS19/25) providing feedback to responses to CP13/24 – Remainder of CRR: Restatement of assimilated law.

Background

In CP13/24, the PRA proposed to restate the remaining relevant provisions in the Capital Requirements Regulation (CRR) within the PRA Rulebook and other policy material such as supervisory statements (SSs) or statements of policy (SoPs).

A number of proposals in CP13/24 were finalised and feedback to responses were provided in PS12/25 – Restatement of CRR and Solvency II requirements in PRA Rulebook – 2026 implementation. In PS19/25, the PRA provides feedback to responses to the remaining proposals and finalises policy in respect of those proposals.

Key changes

The PRA confirms that the near-final policy on level of application of CRR requirements, counterparty credit risk, and settlement risk are as set out in Chapters 2, 4 and 5 of CP13/24, and include:

  • Amendments to the Groups Part, near-final Credit Risk: Internal Ratings Based Approach (CRR) Part and Counterparty Credit Risk (CRR) Part of the PRA Rulebook and PRA Rulebook Glossary.
  • The introduction of a new Settlement Risk (CRR) Part of the PRA Rulebook.
  • Consequential amendments to various Parts of the PRA Rulebook.
  • Amendments to PRA SS15/13 – Groups.
  • Amendments to PRA near-final SS4/24 – Credit risk: Internal ratings based approach.
  • The introduction of a new SoP6/25 – The PRA’s approach to Internal Model Method permission under the Counterparty Credit Risk (CRR) Part.

The PRA’s near-final policy on securitisation requirements include:

  • Amendments to the Securitisation (CRR) Part and Non-Performing Exposures Securitisation (CRR) Part of the PRA Rulebook.
  • Amendments to SS9/13 – Securitisation: Significant Risk Transfer.
  • Amendments to SS10/18 – Securitisation: General requirements and capital framework.
  • A new SoP7/25 – The PRA’s approach to waivers and permissions under the Securitisation (CRR) Part of the PRA Rulebook.
  • A new SoP8/25 – The PRA’s approach to the exercise of powers referred to in Articles 244(3)(b), 245(3)(b), 254(4) and 258(2) of the Securitisation (CRR) Part of the PRA Rulebook.

The PRA’s near-final policy on other CRR requirements include:

  • Amendments to the Required Level of Own Funds (CRR) Part, the near-final Credit Risk: General Provisions (CRR) Part and the near-final Credit Risk: Standardised Approach (CRR) Part of the PRA Rulebook published alongside PS9/24 – Implementation of the Basel 3.1 standards near-final part 2;
  • Amendments to SS10/13 – Standardised approach).
  • Amendments to the near-final SS3/24 – Credit risk definition of default.

The PRA’s near-final policy on the mapping of external credit rating agency ratings to credit quality steps (ECAI mapping) includes amendments to the Credit Risk: Standardised Approach (CRR) Part and the Securitisation (CRR) Part (relating to ECAI mapping).

Next steps

HM Treasury is required to make commencement regulations to revoke the relevant provisions of the UK CRR before the PRA can replace this with PRA rules. Therefore, the PRA has not made final rule instruments and policy materials at this stage.

Once the commencement regulations have been made, the PRA intends to make all the final policy materials and rules in a final PS.