Published 12 September 2024
Last updated 15 July 2025 — See all updates
Applying the Financial Services
and Markets Act 2000 model of regulation to the UK Capital
Requirements Regulation: Policy Update 2025
Basel 3.1 Market Risk
Transitional Provision - draft regulations
Restatement of Capital
Requirements Regulation definitions - draft
regulations
Applying the FSMA 2000 model of
regulation to the Capital Requirements Regulation
Revocation of CRR provisions to
implement Basel 3.1 - draft regulations
Restatement of provisions on
capital buffers - draft regulations
Revocation of CRR provisions on
the definition of capital - draft regulations
Details
HM Treasury is progressing work to apply the UK's established
model of regulation for financial services, known as the
FSMA
model, to the law the UK inherited from the EU (known as
assimilated law) on the capital framework for banks, building
societies and investment firms. FSMA refers to
the Financial Services and Markets Act 2000.
This policy update confirms the legislative approach for
implementing the final post-crisis reforms to banks' capital
requirements, known as Basel 3.1. It explains how HM Treasury
will revoke certain parts of the Capital Requirements Regulation
(“the CRR”,
which is the central piece of assimilated law on bank capital
requirements), which the Prudential Regulation Authority
(PRA) will
then replace with rules implementing the new Basel standards.
The update also outlines the proposed legislative approach for
revoking the remainder of the CRR and for revoking and
restating with modifications the Capital Buffers Regulation.
Completing the application of the FSMA model to
this area of assimilated law will pave the way for a number of
further reforms to the prudential regime proposed by the
PRA,
including a proportionate prudential regime for smaller banks and
building societies.
HM Treasury has published three pieces of draft legislation
alongside the policy update and would welcome technical comments
on the proposed legislative approach within the next 6 weeks. The
PRA has also
published a number of corresponding policy documents that set out
the final Basel 3.1 package and further reforms the PRA proposes to make to
the prudential regime.
