UK Replaces EU Capital Requirements Regulation with Domestic Prudential Regime for Credit Institutions and Investment Firms

The UK is revoking the EU’s Capital Requirements Regulation and replacing it with a new domestic prudential framework through the Overseas Prudential Requirements Regime (Credit Institutions and Investment Firms) Regulations 2026. The revocation of specific articles from the Capital Requirements Regulation comes into force on 1 January 2027. This change grants the UK Treasury direct authority to assess whether third countries’ prudential and supervisory requirements for credit institutions and investment firms are equivalent to UK standards, rather than relying on EU-determined equivalence decisions.

Source: legislation.gov.uk – Read the original