August 2026 Regulation Update

Bank of England (BoE) Banking Taxonomy 4.1.1

The BoE published its taxonomy 4.1.1, which provides technical corrections to earlier versions, 4.0.0 and 4.1.0 (MREL changes). Firms that are to report under Basel 3.1 and SDDT will be required to upgrade to 4.1.1. The taxonomy is effective from 1 January 2027. Whistlebrook will make the necessary changes to its regulatory software.

 

Bank of England Statistical Template BN

Regulatory form BN (Additional Detail of Non-Resident Business) had been earmarked for withdrawal. The Bank advised in August that the Office for National Statistics uses the data and the figures are not readily available across other submissions. Therefore, it has been decided that return BN will remain live.

 

Capital Requirements Directive VI

From 11 January 2027, non-EU headquartered institutions that provide core banking services (deposit taking, lending, issuing guarantees and commitments) in the EU, must have at least a physical branch. That branch is required in the EU member state in which the firm is doing business.

 

UK Liquidity Framework

A policy statement is expected to follow the Prudential Regulation Authority’s (PRA) Consultation Paper 5-26 (end date was in June 2026). The aim of the proposals is to strengthen firms’ liquidity stress testing and controls. Related to this goal, is the removal of the monetisation section in template PRA110. Increased focus on monetisation will be delivered through stress testing and firms’ ILAAPs. Once the Policy Statement becomes available, an update to PRA110 will be included in WIRES.

 

Pillar 2A Capital Framework – Credit and Operational Risks (Review – Phase 1)

PRA Policy Statement 15-26 will introduce changes to Pillar 2A capital requirements with effect from 1 January 2027. Of note, there are the following items of which firms may wish to be aware:

Reporting

• FSA076 will be reduced in size
• FSA077 and FSA082 will be withdrawn
• FSA081 will have a new version

These changes will be included in WIRES.

IRB Benchmarking Method

The comparison of a firm’s standardised approach credit risk weights (at a portfolio level) versus a benchmark, will be replaced.

Credit Scenarios

There will be increased importance of credit scenarios in a firm’s ICAAP, to identify firm specific risks that may not be adequately capitalised.

 

WIRES Releases

Version	Content	Timing
7.4.0	·        Bank of England Banking Taxonomy 4.1.1. ·        Revised Pillar 3 disclosure templates for Basel 3.1 and SDDT firms. ·        General enhancements and any bug fixes.	In light of the Bank of England’s publication of Taxonomy 4.1.1, the timing is to be advised in due course.

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This regulatory update is Whistlebrook’s understanding of the position as at 28th August 2026.