Posted on: January 17, 2025

Basel 3.1

On 17th January 2025, the Prudential Regulation Authority announced that the implementation date of Basel 3.1 is to be delayed until 1st January 2027. This change represents a delay of twelve months. The full effective date will remain as 1st January 2030.

Operational Resilience Reporting

The PRA issued consultation paper 17-24. This paper specifies rules and expectations on a firm’s reporting of operational incidents and use of third parties that is deemed material. The PRA has proposed a way of collecting data that will allow it to respond more effectively to potential risks.

Some of the information will indicate the extent to which an institution is dependent on third parties for its operations. That insight will contribute to a recommendation that a third party be classed by HM Treasury as ‘critical’.

These rules and expectations are proposed to be effective from the second half of 2026.

Reporting of operational incidents will be required where there is an event that poses a threat to the firm’s safety and soundness; there is disruption to the firm’s ability to deliver a service externally; and data of parties outside of the business are adversely affected. The Financial Conduct Authority’s (FCA) Connect portal will be used for submission of the operational incident data.

Reporting of material third party arrangements (including outsourcing) will be through maintenance of a register. The reporting will be a requirement and therefore change the current expectation applicable to outsourcing. The data will be submitted via the FCA’s RegData collection system.

Operational Resilience Framework

According to this framework, by 31st March 2025, the PRA expects firms will be resilient (within agreed impact tolerances) to disruption of their key business services. Institutions will be performing testing to ensure that impacts (of interruptions to key services) will be within accepted levels. Appropriate investment should, based on the framework, have been made to achieve resilience consistently.

WIRES Release

Release ID Target Release Date Comment
7.0 30/06/2025 The timing of this release is dependent on the publication of the Bank of England’s Banking Taxonomy 3.7.0.

This regulatory update is Whistlebrook’s understanding of the position as at 17th January 2025.