The UK Prudential Regulation Authority (PRA) has published a policy statement outlining the PRA's final policy on the definition of capital (as consulted on in 2024), and on proposals in relation to securitisations and mapping external credit rating agency ratings to credit quality steps (ECAI mapping) (also consulted on last year). The policy statement confirms that the changes in relation to the definition of capital (which included restating the majority of relevant requirements in Part Two of the UK Capital Requirements Regulation) are not substantive, and that additional guidance is included in the new Statement of Policy and in SS7/13 (new version effective from 1 January 2026). On ECAI mapping, the policy statement confirms that the PRA has taken on board feedback in respect of the mapping tables, guidance needed and interaction with the Basel 3.1 standards, and confirms that the mapping tables amendments will come into force on 1 January 2026 (ahead of the PRA's implementation of the Basel 3.1 standards). PRA will publish further consequential amendments on the mapping rules changes in due course. Regarding securitisation supervisory expectations, the PRA confirms that it is making certain changes to SS9/13 to add new expectations that are not dependent on Basel 3.1 implementation, and that a subsequent policy statement will cover those that are dependent on Basel 3.1 implementation. As proposed, the updates to SS9/13 will come into force on 1 January 2026.
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