PRA consults on changes to implement Overseas Prudential Requirements Regime

The PRA is consulting on changes to its rules to accommodate the Treasury’s Overseas Prudential Requirements Regime (OPPR).

Key changes include:

• Aligning the PRA rules with the OPRR framework, so they operate coherently once CRR equivalence provisions are revoked and OPRR designations are made by the Treasury.
• Treating exposures as ‘exposures to institutions’ only where the counterparty:
  • is a UK credit institutions or designated investment firm; or
  • is located in an overseas jurisdiction designated by the Treasury under OPRR;
• Clarifications and definitions changes;
• Preserving outcomes under Basel 3.1, by explicitly linking IRB exposure class allocation to ‘exposures to institutions’; and
• Bringing covered bonds issued in designated overseas jurisdictions within ‘eligible covered bonds’ where they meet non-jurisdictional eligibility criteria.

The PRA stresses that the proposals are intended to preserve the current prudential framework, with no material new costs for firms. It is proposed that the changes would take effect alongside the Basel 3.1 package on 1 January 2027.

The consultation closes on 2 April 2026.