On Jun. 5, UK Treasury issued buffer and macro-prudential measures.
UK Treasury announced publication of the Capital buffers and macro-prudential measures regulations 2025 (StIn 2025/653), with an explanatory memorandum.
Follows UK PRA Sep. 2024 proposed to streamline buffer policy material, see #226278.
Summary
Following the UK’s withdrawal from the EU, a large body of detailed and technical financial services regulation remains in legislation as assimilated law.
This approach does not align well with UK’s regulatory framework, known as the FSMA model, established under the Financial services and markets act 2000 (FSMA 2000).
Under this model, detailed regulatory requirements are designed/maintained by independent regulators, within overall policy framework set by UK GVT and UK PRL.
Financial services and markets act 2023 (FSMA 2023) facilitates the repeal of assimilated law and implements smarter regulatory framework tailored to UK’s needs.
This instrument re-states relevant provisions of Capital requirements (capital buffers and macro-prudential measures) regulations 2014 (StIn 2014/894) on Jul. 31, 2025.
2014 Capital buffers regulations revoked by FSMA 2023 with effect from Jul. 31, 2025.
Effectiveness
The regulations, and revocation of 2014 regulations, come into force on Jul. 31, 2025.
In Jun. 2025, UK Treasury issued consequential amendments to rules, see #257861.
