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<\/p>\nThe Point<\/p>\n
In this edition, we discuss latest developments in the UK and EU
\nbanking and investment regulation. These include recent
\nannouncement from the HM Treasury of Leeds Reforms which represent
\nthe most comprehensive overhaul of the UK financial system in over
\na decade, key papers from the Bank of England on fundamental rules
\nfor Financial Market Infrastructures and the banking resolution
\nregime and from the Prudential Regulation Authority on
\nimplementation of Basel 3.1. Our edition also features key EU
\npublications on recent technical standards published by the
\nEuropean Banking Authority on crypto exposure values under CRR
\nIII.<\/p>\n
<\/p>\n
Leeds Reforms outline plans for financial services sector<\/p>\n
On 15 July, HM Treasury announced Leeds Reforms which represent
\nthe most comprehensive overhaul of the UK financial system in over
\na decade, with the aim of making the UK the leading global
\ndestination for financial services by 2035. Key initiatives include
\nunlocking retail investment through FCA-led “Targeted
\nSupport” and allowing Long Term Asset Funds within ISAs.
\nReforms will also free up capital for investment by raising the
\nMREL threshold and reviewing the ring-fencing regime, while Basel
\n3.1 rules will be tailored to support UK competitiveness.<\/p>\n
Read here to know more on the upcoming initiatives
Bank of England paper on maintaining a fit for purpose
On 15 July 2025, the Bank of England (BoE) published a paper on
Click here to read further on the proposed updates
PRA consults on implementation of Basel 3.1 and adjustments to
On 15 July 2025, the Prudential Regulation Authority (PRA)
Read more on the PRA’s proposals here.<\/a><\/p>\n BoE policy statement on Fundamental Rules for FMIs<\/p>\n On 18 July 2025, the Bank of England published a policy
\nthat have been announced.<\/a><\/p>\n
\nresolution regime<\/p>\n
\nmaintaining a fit for purpose resolution regime. The paper outlines
\nthe BoE’s approach to maintaining a fit-for-purpose resolution
\nregime that ensures financial stability while fostering
\nproportionality for firms of varying sizes and complexities. The
\npaper also summarises the various updates the BoE and the
\nPrudential Regulation Authority are making or are proposing to the
\nresolution regime.<\/p>\n
\nin relation to the regime.<\/a><\/p>\n
\nmarket risk framework<\/p>\n
\npublished a consultation paper (CP17\/25) on ‘Basel 3.1:
\nadjustments to the market risk framework’. The purpose of this
\nconsultation is to finalise the implementation of the Basel 3.1
\nstandards in the UK, focusing on market risk requirements under the
\nFundamental Review of the Trading Book (FRTB).<\/p>\n
\nstatement on Fundamental Rules for Financial Market Infrastructures
\n(FMIs). These rules, effective from 18 July 2026, outline the
\nhigh-level outcomes FMIs must achieve in areas such as financial
\nresources, operational resilience, and risk management. The policy
\nis relevant for recognised UK Central Counterparties, recognised UK
\nCentral Securities Depositories, UK Recognised Payment System
\nOperators and UK Specified Service Providers.<\/p>\n