HM Treasury has made the Financial Services and Markets Act 2023 (Prudential Regulation of Credit Institutions) (Consequential Amendments) Regulations 2025 (S.I. 2025/1333). The instrument was made on 15 December 2025, approved by both Houses under the affirmative procedure in sections 83 and 84 of FSMA 2023, and comes into force on 1 January 2026 across the United Kingdom.
The Regulations update UK legislation as prudential references move from the assimilated Capital Requirements Regulation (EU) No 575/2013 to domestic rules. Under section 1 of FSMA 2023 and the revocations listed in Schedule 1, parts of the CRR and related Commission acts are revoked with effect from 1 January 2026 by the Financial Services and Markets Act 2023 (Commencement No. 10 and Saving Provisions) Regulations 2025 (S.I. 2025/873). The consequential changes ensure statutory text remains operable once those provisions fall away.
Most of the revoked CRR material will be replaced by Prudential Regulation Authority rules. From 1 January 2026, the PRA Rulebook becomes the primary source for the affected capital and definitional standards. The PRA confirms the Rulebook is available at https://www.prarulebook.co.uk/ and in hard copy upon request at 20 Moorgate, London EC2R 6DA.
Banking Act 2009 amendments focus on definitions used across the special resolution regime. In section 3(1), the definition of ‘Common Equity Tier 1 instruments’ is adjusted by inserting ‘or’ after ‘to (4),’ and removing ‘or 31(1)’. The definition of ‘own funds requirements’ is corrected by substituting ‘and’ for ‘to’. These are technical edits to align domestic terminology with PRA rule references rather than CRR article numbering.
The Bank Recovery and Resolution (No. 2) Order 2014 is updated to remove dormant EU cross-references from the definition of ‘response period’ in articles 64(2) and 68(2). Specifically, the words ‘as applicable’ and the reference to ‘the requirements referred to in Articles 92a and 494 of the capital requirements regulation’ are omitted. This avoids tying resolution timelines to provisions that will no longer form part of UK law.
Within the Financial Conglomerates and Other Financial Groups (Amendment etc.) (EU Exit) Regulations 2019, regulation 7(6) omits sub-paragraph (a) and the following ‘and’. The change reflects the transfer of technical calculation methodologies to the domestic rulebook and streamlines how UK competent authorities ensure consistent application for regulated entities in financial groups.
The Bank Levy (Loss Absorbing Instruments) Regulations 2020 are amended so that, in the definition of ‘relevant requirement’, paragraph (b) no longer lists ‘or article 92a’. Removing this CRR citation prevents the levy framework from pointing to a revoked provision and preserves coherence with UK prudential rules governing loss-absorbing instruments.
For firms subject to PRA supervision, the practical effect is that substantive prudential requirements sit in the PRA Rulebook rather than retained EU law. Compliance teams should update internal manuals, legal opinions and templates that currently cite CRR provisions, mapping them to the corresponding PRA rules-particularly around own funds terminology, CET1 eligibility and resolution ‘response period’ triggers.
The Regulations extend to England and Wales, Scotland and Northern Ireland. HM Treasury has not published an impact assessment, stating that no impact, or no significant impact, is foreseen. Given commencement on 1 January 2026, firms have a short window to confirm board approvals for citation changes and ensure attestations and reporting reflect the new legal bases.