PRA CRR Definitions Restatement: The 1 January 2027 Rulebook Switch

ByRegReportingDesk

From 1 January 2027, Articles 4, 4A, 4B and 5 of the UK Capital Requirements Regulation (CRR) are revoked. HM Treasury has restated selected definitions in domestic legislation, while the PRA’s CRR definitions restatement, finalised in Policy Statement PS14/26 on 27 May 2026, places other PRA-facing definitions in the PRA Rulebook Glossary or cross-refers from the Glossary to the relevant legislation. The changes take effect alongside most of the Basel 3.1 package.

For reporting teams this is a plumbing change with real consequences. PRA rules, permissions and reporting provisions that depend on revoked CRR definitions must be traced to the applicable replacement: a Glossary definition, a Glossary cross-reference to legislation or another corresponding PRA rule. Most wording carries across unchanged, but a handful of definitions have been amended, and the mapping between old and new is something firms have to work through rather than assume.

Related reading: PRA Basel 3.1 Market Risk IMA Adjustments. Most Basel 3.1 market-risk requirements apply from 1 January 2027, but the FRTB internal model approach comes into effect on 1 January 2028.

Why the CRR definitions restatement is happening now

The trigger is HM Treasury’s programme to apply the Financial Services and Markets Act 2000 (FSMA) model of regulation to the UK CRR. Its July 2025 policy update set out how it would revoke the remaining CRR provisions and restate in legislation only the definitions needed for the regulatory perimeter, the overseas recognition regimes, or other legislation such as the Banking Act. Everything else moves into the regulators’ rulebooks. The PRA then consulted in CP19/25 (July 2025) on Glossary definitions to replace those in Articles 4, 4A, 4B and 5 of the CRR, and on consequential amendments across the Rulebook. PS14/26 is the final policy following three consultation responses, and the accompanying PRA Rulebook: Definitions and Interpretation (CRR) Instrument 2026 (PRA2026/16) was made by the Prudential Regulation Committee on 19 May 2026.

The artefact to grab first is Appendix 2, the corresponding-provisions table published for section 5(4) of the Financial Services Act 2021. It states whether and how CRR rules correspond to revoked CRR provisions: for example, credit institution corresponds to Article 4(1)(1), institution to Article 4(1)(3), and financial holding company to Article 4(1)(20). Use it as a cross-reference rather than as a complete inventory, because some revoked provisions have no corresponding CRR rule and selected definitions are supplied through legislation.

The dates that anchor the project

This is a single-date change with a long run-up. The commencement statutory instrument revoking Articles 4 to 5 of the CRR was made in February 2026, but with effect from 1 January 2027, so nothing switches before then.

  • July 2025: HM Treasury policy update on applying the FSMA model to the UK CRR, and the PRA’s CP19/25 consultation.
  • February 2026: the commencement SI revoking Articles 4 to 5 of the CRR is made, with effect from 1 January 2027, and HM Treasury confirms its approach.
  • April 2026: the affirmative CRR Definitions SI restating a number of CRR definitions in legislation is made.
  • 19 May 2026: the PRA Rulebook: Definitions and Interpretation (CRR) Instrument 2026 (PRA2026/16) is made by the Prudential Regulation Committee.
  • 27 May 2026: PS14/26 is published.
  • 1 January 2027: the revocation takes effect, the Glossary definitions come into force, and the change lands alongside the Basel 3.1 package.

There is no earlier phase-in for the PS14/26 definitions. They commence on 1 January 2027 with most Basel 3.1 policy and rules; the FRTB internal model approach is the principal exception and takes effect on 1 January 2028.

Who the restatement catches

PS14/26 is most relevant to PRA-authorised UK banks, building societies, PRA-designated UK investment firms, and their qualifying parent undertakings, including financial holding companies and mixed financial holding companies. Given the breadth of the definitions being moved and the range of Rulebook Parts amended, the PRA notes it is also of potential relevance to all persons subject to PRA rules and their counterparties.

The restatement changes where the defining text lives for firms already subject to PRA rules. Scope and perimeter are unchanged.

Lift and shift, with the exceptions that matter

The PRA’s default stance was lift and shift: take the original CRR text, unchanged, and incorporate it directly into the Rulebook where possible. The vast majority of definitions carried over on that basis, with only targeted clarity improvements. The exceptions are where a reporting team’s time is best spent. Following consultation, the final policy changed several definitions relative to the draft:

  • Branch: amended so the Glossary wording tracks the CRR definition for both credit institutions and designated investment firms, after a respondent queried a slight wording difference.
  • Securitisation: updated to reflect the change to the legislative definition made by the CRR Definitions SI in the Securitisation Regulations 2024, for consistency with the PRA’s Basel 3.1 rules.
  • Market value: additional wording added to Article 229(3) of the Credit Risk Mitigation (CRR) Part to specify the meaning of market value for physical collateral other than immovable property, closing a gap left by the deletion of Article 229(4).
  • Recognised exchange: revised to reflect the policy confirmed in PS6/26 on recognised exchanges and the transfer of main indices.
  • Regulatory capital instruments: certain definitions clarified so they capture all relevant provisions in the Own Funds (CRR) Part, plus consistent italicisation of embedded CRR terms.

Continuity was also the answer where firms might have expected movement. The public sector entity definition, which one respondent called ambiguous, was left unchanged under lift and shift, so firms still assess entities against the restated text rather than a new list of named bodies.

Where the restatement lands on your returns

The Glossary feeds the terms used across the PRA Rulebook, and the instrument amends a long list of Parts, including the reporting Parts. The defined-term inputs to your prudential returns are being re-sourced, so the mapping work sits upstream of the templates rather than in them. Firms running a COREP reporting production line should trace which data-point definitions rely on a CRR-defined term and confirm the new Glossary reference.

PS14/26 changes the Glossary and makes consequential amendments across PRA Rulebook Parts, including reporting provisions, but it does not redesign COREP or FINREP templates. A respondent asked the PRA to extend the work to align terminology in FINREP reporting, and the PRA referred that to future phases of its Future Banking Data programme rather than making the change here.

The external credit assessment institution (ECAI) definitions show continuity being deliberate. The PRA confirmed that ECAIs nominated for securitisation exposures under Article 270D of the Securitisation (CRR) Part are separate from those nominated for credit risk under Article 138 of the Credit Risk: Standardised Approach (CRR) Part, so firms can keep distinct nomination lists. That precision also matters for large exposures reporting, where terms such as group of connected clients drive the numbers.

The definitions that already moved, and one guidance change

Three credit-risk terms are easy to look for in the wrong instrument. Conversion factor, loss given default and probability of default were restated as part of PS1/26, the final Basel 3.1 rules, so PS14/26 does not restate them again. A team building an internal ratings based mapping should reach for PS1/26 for those terms, even though the corresponding provisions table still records their CRR origin.

There is also a guidance change. Responding to feedback on the participation definition and the older durable link concept, the PRA added a new chapter to supervisory statement SS15/13 on Groups, clarifying its interpretation of maintaining links on a long-term basis. That chapter supersedes the PRA’s standalone durable-link statement from October 2016, without material change, so any group-scope determination that relied on the 2016 statement should be re-read against it.

Frequently Asked Questions

Does PS14/26 change any of my reporting deadlines?

No. The instrument changes where certain defined terms live, with effect from 1 January 2027, alongside the Basel 3.1 package. Existing COREP and FINREP submission calendars are unaffected; remittance dates and reporting frequencies are unchanged.

From 1 January 2027, what happens to a policy that cites Article 4(1) of the CRR?

Those CRR articles are revoked. Use Appendix 2 to identify whether there is a corresponding PRA rule, then check the relevant Glossary entry and legislation because selected definitions are restated in statute rather than solely in the Glossary.

Is the securitisation definition materially different now?

The Glossary definition is updated to reflect the change to the legislative definition made by the CRR Definitions SI, for consistency with the PRA’s Basel 3.1 rules. It is worth checking against your existing definition rather than assuming a straight carry-over.

Where did probability of default, loss given default and conversion factor go?

They were restated through PS1/26, the final Basel 3.1 rules, so they are not restated again in PS14/26. Map those three terms from the Basel 3.1 rules instrument.

Does the restatement widen who has to report to the PRA?

No. It applies to firms already subject to PRA rules and does not create a new class of reporting entity. The scope statement flags potential relevance to all persons subject to PRA rules and their counterparties because of the breadth of terms moved, not because the perimeter has expanded.

Key Takeaways

  • Articles 4, 4A, 4B and 5 of the UK CRR are revoked from 1 January 2027. Selected definitions are restated in domestic legislation, while other PRA-facing definitions are restated in or cross-referenced through the PRA Rulebook Glossary.
  • The approach is lift and shift: the vast majority of definitions carry across without a change in substance.
  • Focus checking on the amended terms: branch, securitisation, market value in Article 229(3), recognised exchange, and certain own funds definitions.
  • Use the Appendix 2 corresponding-provisions table to identify whether and how a revoked CRR provision corresponds to PRA rules, then verify the relevant Glossary entry and any legislative cross-reference.
  • The change does not create new reporting entities, new remittance dates, or a wider perimeter.
  • Conversion factor, loss given default and probability of default were restated through PS1/26, not this instrument.

Sources and References

  • PRA, PS14/26 – CRR Definitions: restatement in PRA Rulebook (27 May 2026): bankofengland.co.uk
  • PRA Rulebook: Definitions and Interpretation (CRR) Instrument 2026 (PRA2026/16), Appendix 1 to PS14/26: ps1426app1.pdf
  • Corresponding provisions table, Appendix 2 to PS14/26: ps1426app2.pdf
  • HM Treasury, Applying the Financial Services and Markets Act 2000 model of regulation to the UK Capital Requirements Regulation, Policy Update (July 2025) and consultation response (February 2026).
  • PRA, CP19/25 – CRR Definitions: restatement in PRA Rulebook (July 2025); PS1/26 – Implementation of Basel 3.1: Final rules; PS6/26 – Recognised exchanges policy and transfer of main indices; SS15/13 – Groups.

Turning the corresponding provisions table into a work plan

The restatement rewards firms that treat it as an inventory exercise rather than a reading exercise. Pull the corresponding-provisions table, list every CRR-defined term your rules, permissions and returns rely on, and confirm the applicable replacement source for each: a Glossary definition, a Glossary cross-reference to legislation or another corresponding PRA rule. Flag the amended definitions for a closer read. Because PS14/26 commences with most Basel 3.1 rules on 1 January 2027, the mapping is best run alongside the Basel 3.1 implementation rather than as a separate late task.

Last updated: July 2026

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