Treasury publishes draft capital requirements amendment laws

Treasury has published two draft statutory instruments:

• the CRR (Market Risk Transitional Provision) Regulations 2026 will introduce a transitional provision to require credit institutions and designated investment firms not to apply the PRA market risk rules on updated internal model requirements during the 2027 calendar year and to continue to apply existing models. The changes follow the global delays to Basel 3.1 implementation; and
• the Credit Institutions and Investment Firms (Miscellaneous Definitions)(Amendment) Regulations 2026 will restate certain definitions currently in the UK CRR that need to stay after its revocation takes effect.