On 16 July 2025, the Prudential Regulation Authority (PRA) published Policy Statement 13/25: The PRA’s implementation of the Bank Resolution (Recapitalisation) Act (PS13/25).

Background

On 31 March 2025, the PRA published a consultation paper, CP4/25, setting out proposed changes in relation to the deposit protection available from the Financial Services Compensation Scheme (FSCS). The PRA is responsible (under the Financial Services and Markets Act 2000) for making rules in relation to depositor protection. CP4/25 also contained proposals that updated the rules that would be needed to facilitate the implementation of proposals made in the Bank Resolution (Recapitalisation) Bill. The consultation closed on 30 April 2025.

 On 15 May 2025, the Bank Resolution (Recapitalisation) Bill received Royal Assent becoming the Bank Resolution (Recapitalisation) Act 2025 (the Act).

Policy Statement

In PS13/25 the PRA provides feedback to responses it received to the section of CP4/25 dealing with the implementation of the Act. It also contains the PRA’s final amendments to the Depositor protection Part of the PRA Rulebook (Appendix 1) relating to the implementation of the Act.

The PRA reports that it has made no significant amendments to the draft policy following consultation. It has made one minor amendment to the draft policy, to rename the new class for recapitalisation levies as class A2 rather than A1 as was consulted on. This is intended to better fit with the Financial Conduct Authority’s existing FSCS levy class naming conventions. The PRA states that this has no impact on the effect of the rule changes.

Statutory instrument

On 15 July 2025, the Bank Resolution (Recapitalisation) Act 2025 (Commencement) Regulations 2025 were made. These Regulations bring into force on 16 July 2025 the following provisions of the Act: section 1 (recapitalisation payments); section 2 (reporting); section 3 (notification to Parliamentary Committees); section 4 (reimbursement in respect of recapitalisation payments); section 5 (code of practice); section 6 (amendments to the Financial Services and Markets Act 2000); and section 7 (amendments to the Banking Act 2009).

Next steps

The PRA rule changes were made on 15 July 2025, coming into force on 16 July 2025 in line with commencement of the Act.