Posted on: July 28, 2026
July 2026 Regulation Update
HM Treasury Overseas Prudential Regime
The Prudential Regulation Authority (PRA) issued Policy Statement 16-26 in follow up to its Consultation Paper 3-26. The content is effective from 1st January 2027. Banks (except third country branches), building societies and PRA regulated investment firms are affected. Of note are the following:
- An exposure to a credit institution that is subject to a jurisdiction designated by HM Treasury as ‘equivalent’, can be classed as “exposures to Article 119 institutions”. The exposure would then be treated for credit risk capital requirements as defined for “exposures to institutions”.
- Covered bonds issued by banks having their registered office in HM Treasury designated jurisdictions, would be subject to the preferential treatment under the credit risk IRB and standardised approaches. Non-UK issued covered bonds’ rules for qualification as part of a firm’s liquidity buffer, are to remain unchanged.
Critical Third Parties
On 13th July 2026, the Financial Conduct Authority (FCA), Bank of England (BoE) and PRA, commenced oversight of critical third party suppliers (e.g. technology and other service providers). Such suppliers are those designated by HM Treasury as having a potentially significant adverse effect on the financial sector, were they to fail or their activities disrupted.
BoE Statistical Reporting Form PL
Updated definitions within this form are expected on 31st July 2026 and will be effective from Q1 of 2027. Relevant changes will be made to Whistlebrook’s regulatory reporting solution.
Retail Banking Data Reporting Changes
The FCA advised that data will be required on an annual basis (rather than adhoc) and there will be less detailed requirements. This change became effective on 1st June 2026. The first affected submission is due by 30th November 2026.
Ring Fencing Shared Services Rules
PRA Consultation Paper 10-26 is proposing removal of some rules applicable to ring fenced entities. Currently, a ring fenced bank is unable to receive services across the fence. For example, legal expertise cannot be shared. In addition, it is essential that provision of services related to acceptance of retail deposits are not adversely impacted by other group members. The PRA is of the view that other regimes, including Operational Continuity in Resolution (OCIR) and the Operational Resilience Framework, provide sufficient control that is more flexible than the ring fenced Shared Services rules and their removal is justified.
Basel 3.1 – Market Risk Internal Models Approach IMA)
The PRA issued Consultation Paper 9-26 and proposed a few changes to IMA. As part of those amendments, reporting template OF 24.02 will be revised. According to publications, IMA is most likely to be applied by some international institutions. The regulation, known as the Fundamental Review of the Trading Book, will not be implemented until 1st January 2028.
WIRES Releases
| Version | Approximate Timing | Main Content |
| 7.4.0 | October 2026 | · Regulatory changes including Bank of England Banking Taxonomy 4.1.0 for MREL. Unless firms are subject to MREL reporting, an upgrade to that taxonomy is not essential.
· Bug fixes |
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This regulatory update is Whistlebrook’s understanding of the position as at 27th July 2026.