PRA Regulatory Digest – March 2026

The PRA Regulatory Digest is for people working in the UK financial services industry and highlights key regulatory news and publications delivered for the month.

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Published on

01 April 2026 The PRA Regulatory Digest summarises key regulatory developments and publications from March 2026, including final policy statements on operational resilience, resolution and disclosure, a consultation on modernising the liquidity framework, and relevant speeches and supervisory updates.

Top news and publications

• PS6/26 – Recognised exchanges policy and transfer of main indices
• CP5/26 – Modernising the liquidity policy framework
• PS7/26 – Operational resilience: Operational incident and third-party reporting
• PS9/26 – Resolution planning: Amendments to MREL reporting templates
• PS10/26 – Amendments to Resolution Assessment threshold and Recovery Plans review frequency
• PS11/26 – Disclosure: resolvability resources, capital distribution constraints and the basis for firm Pillar 3 disclosure
• Data as a dialogue – speech by Vicky White
• Modernising the liquidity framework for banks and building societies - speech by Phil Evans
• PS8/26 – Financial Services Compensation Scheme – Management Expenses Levy Limit (MELL) 2026/27
• Skilled Persons Reviews – Update

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News and speeches

Data as a dialogue – speech by Vicky White

12 March 2026

Data is central to the PRA’s supervision and policymaking. In this speech, Vicky White explains how data underpins an ongoing dialogue between the PRA and the firms we regulate. She explains how bank data informs supervision, risk assessment, and policy decisions. Vicky also outlines how the PRA’s Future Banking Data programme is reducing banks’ reporting costs; while ensuring we continue to collect relevant, high-quality, and timely information.

Modernising the liquidity framework for banks and building societies - speech by Phil Evans

17 March 2026

In this speech, Phil Evans sets out the PRA’s proposals to modernise the UK’s liquidity framework. He explains how targeted, proportionate reforms strengthen firms’ ability to monetise assets and improve operational readiness, drawing on lessons from the March 2023 banking turmoil.

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Cross cutting publications

Version 4.0.0 of the Bank of England Banking XBRL Taxonomy

27 February 2026

On 27 February 2026 the PRA published the Bank of England Banking taxonomy v4.0.0 setting out the technical implementation of the reporting requirements expressed in PS1/26 – Implementation of Basel 3.1: Final rules and PS4/26 – The Strong and Simple Framework: The simplified capital regime for Small Domestic Deposit Takers (SDDTs) – final rules, intended to take effect from Friday 1 January 2027.

This taxonomy release includes eight new reporting modules, three of which are SDDT-tailored (PRA116, PRA117, PRA118) and one module (LVR001) which has changed for all firms. In PS20/25 the PRA explains that for Leverage reporting (LVR001) with reference dates on or after Friday 1 January 2027 the same instructions and templates shall apply to all reporting entities (ie, SDDTs and non-SDDTs) through the implementation of the banking taxonomy version 4.0.0, noting that non-SDDTs are exempt from reporting the new row 0121 in template LV47.00 (Derogation for derivatives: the SDDT method in accordance with Article 429c(6)).

Readers are invited to refer to the relevant taxonomy release note on the banking regulatory reporting webpage for more details.

PS7/26 – Operational resilience: Operational incident and third-party reporting

18 March 2026

Policy statement (PS) 7/26 sets out the PRA’s final policy for establishing a consistent, timely and proportionate framework for reporting operational incidents and material third‑party (MTP) arrangements across PRA‑regulated firms. Published on 18 March 2026, it follows consultation paper (CP) 17/24 and seeks to strengthen operational resilience by improving supervisory visibility of incident-driven risks and firms’ reliance on third‑party services, while reducing unnecessary burden. The PRA has refined its proposals in response to industry feedback, including clarifying notification rules, narrowing the scope of MTP reporting for smaller credit unions and third‑country branches, and updating templates to align with the Financial Conduct Authority (FCA) and the Bank of England’s financial market infrastructure supervision.

PS8/26 – Financial Services Compensation Scheme – Management Expenses Levy Limit (MELL) 2026/27

31 March 2026

This PS is relevant to all PRA and FCA-authorised firms, who fund the FSCS through levies. It contains no material of direct relevance to retail financial services consumers or consumer groups upon which they might need to act. As costs to authorised firms may be passed on to consumers in the form of higher prices, consumers may indirectly contribute to part of the costs of the FSCS. However, an efficient and adequately funded compensation scheme benefits all consumers. It helps secure an appropriate degree of protection for consumers of financial services firms and promotes the stability of, and confidence in, the UK financial system.

New s166 Skilled Persons panel goes live

30 March 2026

The PRA and the FCA have launched a new Skilled Persons panel effective from 1 April 2026, which will be in place for four years until 31 March 2030. This panel supports the commissioning of Skilled Person Reports under section 166 of the Financial Services & Markets Act 2000, serving as a key supervisory tool in relation to regulated firms and their groups.

For more information, please see Supervision ‘Skilled Persons Reviews’

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Banking publications and updates

PS6/26 – Recognised exchanges policy and transfer of main indices

05 March 2026

This PS provides the PRA’s final policy following CP3/25 – Recognised exchanges policy and transfer of main indices and aspects of CP19/25 – CRR Definitions: restatement in PRA Rulebook, where relevant to the recognised exchanges (REs) proposals. It establishes a new Recognised Exchanges (Capital Requirements Regulation (CRR)) Part of the PRA Rulebook, sets conditions for identifying recognised exchanges under Article 4(1)(72)(c) of the CRR, and restates in the PRA Glossary the list of ‘main indices’ previously contained in Commission Implementing Regulation 2016/1646.

CP5/26 – Modernising the liquidity policy framework

17 March 2026

The PRA has published a CP proposing reforms to modernise the UK liquidity policy framework, with a focus on ensuring that banks can monetise liquid assets swiftly during fast‑moving stress events. The consultation seeks feedback on measures that would require firms to identify and address barriers to asset monetisation, expand internal liquidity stress testing to include rapid outflows over a one‑week horizon, and remove existing exemptions that currently exclude sovereign bonds and other ‘level one assets’ from annual monetisation testing. The PRA also intends to streamline data requests, thereby preventing an increase in overall reporting requirements, and to encourage firms to maintain operational readiness to access central bank facilities when needed. Taken together, these proposals aim to strengthen the usability of liquid assets rather than increase liquidity holdings.

PS9/26 – Resolution planning: Amendments to MREL reporting templates

26 March 2026

This PS sets out the PRA’s final policy following CP15/25 on targeted amendments to Minimum Requirement for Own Funds and Eligible Liabilities (MREL) reporting. The PRA confirms changes to the data elements in the MREL resources (MRL001) and MREL debt (MRL003) templates, and the full deletion of the MREL resources forecast template (MRL002). It also finalises consequential amendments to reporting instructions and to SS19/13 – Resolution planning.

PS10/26 – Amendments to Resolution Assessment threshold and Recovery Plans review frequency

26 March 2026

This PS finalises the PRA’s proposals in CP14/25 to update the thresholds and review requirements within the Bank of England’s recovery and resolution frameworks. These frameworks were originally established following the global financial crisis to improve firms’ resilience to stress and ensure orderly resolution where recovery is not possible. The changes respond to supervisory experience and aim to ensure the regime remains appropriately calibrated and proportionate to the risks firms pose.

PS11/26 – Disclosure: resolvability resources, capital distribution constraints and the basis for firm Pillar 3 disclosure

26 March 2026

This PS finalises the PRA’s proposals in CP16/25 to enhance the clarity, consistency and usefulness of firms’ Pillar 3 disclosures relating to resolvability resources and capital distribution constraints. The PRA identifies the need for more consistent information on the adequacy of Minimum Requirement for Own Funds and Eligible Liabilities (MREL) resources, clearer explanation of the implications of capital distribution constraints, and improved transparency regarding which disclosure regime applies to each firm. These measures aim to strengthen market discipline, support confidence in orderly resolution and improve user understanding.

More information

Bank Underground – a blog for Bank of England staff to share views that challenge – or support – prevailing policy orthodoxies. The views expressed here are those of the authors, and are not necessarily those of the Bank of England or its policy committees.

Bank Insights – our internal analysis on important and topical issues.

Explainers – from interest rates and inflation through to bank failures and financial crises, Explainers uses everyday examples and engaging visuals to bring economics to life.

European and International developments – readers are referred to the following websites:

• European Banking Authority
• European Insurance and Occupational Pensions Authority
• Basel Committee on Banking Supervision
• International Association of Insurance Supervisors
• Financial Stability Board

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Other prudential regulation releases

Prudential Regulation // Consultation paper

01 April 2026

CP6/26 – High loan to income lending

CP6/26 – High loan to income lending Prudential Regulation // PRA Regulatory Digest

01 April 2026

PRA Regulatory Digest – March 2026

PRA Regulatory Digest – March 2026 Prudential Regulation // Policy statement

31 March 2026

PS8/26 – Financial Services Compensation...

PS8/26 – Financial Services Compensation Scheme – Management Expenses Levy Limit (MELL) 2026/27 Prudential Regulation // Supervisory statement

26 March 2026

SS9/17 - Recovery planning

SS9/17 - Recovery planning View more

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