Updated criteria set for systemically important institutions
The Prudential Regulation Authority has updated Statement of Policy 1/16 on identifying other systemically important institutions. The revised framework took effect on July 29, 2026, incorporating low-impact policy amendments.
Focus on domestic consolidation
The Prudential Regulation Authority (PRA) has issued an updated Statement of Policy 1/16, setting out the criteria and scoring methodology for identifying other systemically important institutions (O-SIIs).
The update took effect on July 29, 2026, following the release of LIAF02/26 regarding low-impact amendment finalisations.
Required under the Capital Requirements Directive (2013/36/EU) as implemented in domestic macro-prudential regulations, the policy applies to credit institutions, investment firms, and parent holding companies at their highest level of consolidation in the United Kingdom.
Operating branches of EEA and third-country firms remain excluded from the scope of these rules.
A decade of regulatory adjustments
The updated policy builds on a series of revisions to the UK prudential framework since its initial publication in February 2016.
Previous updates were implemented in December 2020 following CRD V, in November 2022 under PS9/22, and in July 2025 alongside PS8/25 adjustments to capital buffers.
The latest July 2026 iteration maintains the PRA's structured assessment process while integrating technical adjustments under the regular policy maintenance cycle.
Housekeeping over overhaul
This publication marks routine maintenance rather than a shift in supervisory stance.
By keeping scoring methodologies intact, the PRA maintains regulatory predictability for domestic firms.
Market impact is negligible, serving primarily as procedural compliance for capital buffer frameworks.