UK PRA publishes policy statement on amendments to UK capital buffers framework

The UK Prudential Regulation Authority (PRA) has published its final policy statement in relation to amendments being made to the UK framework on capital buffers. Together with the Capital Buffers and Macro-prudential Measures Regulations 2025 (Capital Buffer Regulations), published in June, the amendments result in some regulatory material on the UK capital buffers framework being removed from the statute book and replaced by PRA policy material. In addition, the PRA has sought to streamline some of its policy materials on capital buffers, to enhance usability and clarity.

In particular, the PRA:

• Revokes the UK Technical Standards on the methodology for the identification of globally systemically important insurers (G-SIIs).
• Introduces a new Statement of Policy (SoP) setting out the PRA's approach to G-SII identification and buffers, which will replace the aforementioned UK Technical Standards and relevant provisions to be revoked by the Capital Buffer Regulations.
• Makes minor amendments to the PRA's existing SoPs on O-SII designation and O-SII buffer setting, to reflect amendments in the Capital Buffer Regulations.
• Makes minor consequential amendments to PRA rules that refer directly to the Capital Buffer Regulations.

The amendments come into effect on 31 July.

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