CRR definitions restated in PRA Rulebook

The PRA has published its final policy statement, providing feedback to consultation paper CP19/25 and detailing changes to the PRA Rulebook.

This includes updates to the Rulebook Glossary and consequential amendments across other Parts, as well as revisions to supervisory statement SS15/13 on Groups.

The changes primarily involve restating Capital Requirements Regulation (CRR) definitions within the PRA Rulebook Glossary, largely without substantive policy alterations, though some targeted improvements enhance clarity.

These updates are most relevant to PRA-authorised UK banks, building societies, and investment firms.

The final policy incorporates several adjustments from the draft, such as consistent italicisation of embedded CRR terms, a revised 'branch' definition, and an updated 'securitisation' definition to align with Basel 3.1 rules.

All changes will become effective on January 1, 2027, alongside the broader Basel 3.1 package.

The policy statement follows HM Treasury's July 2025 update, which outlined plans to revoke remaining CRR provisions and restate necessary definitions in UK legislation.

Subsequently, the PRA proposed transferring CRR definitions from Articles 4, 4A, 4B, and 5 into its Rulebook Glossary, aiming for largely substantive consistency while enhancing clarity in some areas.

HM Treasury confirmed its legislative approach in February 2026, including an amendment to the 'securitisation' definition for consistency with Basel 3.1. The PRA received three responses to its consultation, generally supporting the objective of transferring definitions and simplifying the Rulebook.

Respondents also provided constructive feedback on specific definitions and suggested further steps for Rulebook navigation.