The Financial Services and Markets Act 2023 (Prudential Regulation of Credit Institutions) (Consequential Amendments) Regulations 2025

Made: 15th December 2025

Coming into force: 1st January 2026

The Treasury make these Regulations in exercise of the powers conferred by section 83(1) and 83(2) of the Financial Services and Markets Act 2023[^f00001].

A draft of this instrument has been laid before and approved by a resolution of each House of Parliament in accordance with sections 83(3) and 84(3) and (5) of that Act.

Part 1 — Introduction

Citation, commencement and extent

1

• (1) These Regulations may be cited as the Financial Services and Markets Act 2023 (Prudential Regulation of Credit Institutions) (Consequential Amendments) Regulations 2025.

• (2) These Regulations come into force on 1st January 2026.

• (3) These Regulations extend to England and Wales, Scotland and Northern Ireland.

Part 2 — Amendment of Primary Legislation

Banking Act 2009

2

In section 3(1) (interpretation: other expressions) of the Banking Act 2009[^f00002]—

• (a) in the definition of “Common Equity Tier 1 instruments”[^f00003]—

• (i) after “to (4),” insert “or”;

• (ii) omit “or 31(1)”;

• (b) in the definition of “own funds requirements”[^f00004], for “to” substitute “and”.

Part 3 — Amendment of Secondary Legislation

Bank Recovery and Resolution (No. 2) Order 2014

3

In articles 64(2) (interpretation of Chapter 3) and 68(2) (interpretation of Chapter 4) of the Bank Recovery and Resolution (No. 2) Order 2014[^f00005], in the definition of “response period”[^f00006], in sub-paragraph (a), omit “, as applicable,” and “the requirements referred to in Articles 92a and 494 of the capital requirements regulation or”.

Financial Conglomerates and Other Financial Groups (Amendment etc.) (EU Exit) Regulations 2019

4

In regulation 7(6) (transfer of functions to the competent authorities to ensure consistent application of the technical calculation methods of capital adequacy requirements for regulated entities in a financial conglomerate) of the Financial Conglomerates and Other Financial Groups (Amendment etc.) (EU Exit) Regulations 2019[^f00007], omit sub-paragraph (a) and the “and” after it.

Bank Levy (Loss Absorbing Instruments) Regulations 2020

5

In regulation 2 (interpretation) of the Bank Levy (Loss Absorbing Instruments) Regulations 2020[^f00008], in the definition of “relevant requirement”, in paragraph (b), omit “or article 92a”.

Signed

Taiwo Owatemi — Stephen Morgan — Two of the Lords Commissioners of His Majesty’s Treasury — 15th December 2025

Explanatory note

(This note is not part of the Regulations)

Explanatory Note

Section 1 of the Financial Services and Markets Act 2023 (c. 29) revokes assimilated law referred to in Schedule 1 to that Act.

These revocations include—

• Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (“the CRR”);

• Commission Implementing Regulation (EU) 2016/1800;

• Commission Implementing Regulation (EU) 2016/1801; and

• Commission Delegated Regulation (EU) 2016/1450.

The revocations of certain provisions in Parts 1, 2 and 10 of the CRR and the Commission Implementing and Delegated Regulations listed above take effect on 1st January 2026 by virtue of the Financial Services and Markets Act 2023 (Commencement No. 10 and Saving Provisions) Regulations 2025 (S.I. 2025/873 (C. 38)).

These Regulations make consequential amendments in connection with those revocations.

Most of the revoked CRR provisions will be replaced by Prudential Regulation Authority (“PRA”) rules. The rules can be found at https://www.prarulebook.co.uk/ and a copy can be obtained from the PRA, 20 Moorgate, London EC2R 6DA.

No impact assessment has been published in respect of these Regulations because no impact, or no significant impact, on the private, voluntary or public sector is foreseen.

Footnotes

[^f00001]: 2023 c. 29.

[^f00002]: 2009 c. 1.

[^f00003]: The definition of “Common Equity Tier 1 instruments” was inserted by S.I. 2014/3329.

[^f00004]: The definition of “own funds requirements” was inserted by S.I. 2014/3329 and amended by S.I. 2021/1376.

[^f00005]: S.I. 2014/3348.

[^f00006]: The definition of “response period” was inserted, in both cases, by S.I. 2020/1350 and later amended by the same instrument.

[^f00007]: S.I. 2019/264.

[^f00008]: S.I. 2020/1188.