PRA publishes July 2026 Regulatory Digest

On August 3, 2026, the Prudential Regulation Authority (PRA) published its July 2026 Regulatory Digest, providing an overview of the Authority’s regulatory activities during the month, including consultations, policy statements and other regulatory developments. The digest also provides links to the relevant publications and serves as a useful overview of recent and upcoming prudential changes for PRA-regulated firms.

The July edition highlights three consultation papers and three policy statements covering developments in the areas of prudential requirements, ring-fencing, captive insurance, friendly societies, regulatory fees and Solvency UK.

On July 14, 2026, the PRA published Policy Statement PS16/26 – PRA rule changes to accommodate HM Treasury’s Overseas Prudential Requirements Regime. The statement sets out final rules following Consultation Paper CP3/26 and replaces references to the Capital Requirements Regulation (CRR) equivalence framework with HM Treasury’s new Overseas Prudential Requirements Regime (OPRR). The amendments affect, among other areas, exposures to third-country institutions, third-country covered bonds and the treatment of third-country investment firms.

On the same day, the PRA published Consultation Paper CP10/26 – Ring-fenced bodies: Changes to the continuity of provision of services rules. The consultation proposes removing the Continuity of Provision of Services Chapter from the Ring-fenced Bodies part of the PRA Rulebook, together with related amendments to the Rulebook and Supervisory Statement SS8/16. The PRA considers the existing requirements no longer necessary, as firms have implemented the operational arrangements required to support ring-fencing and remaining expectations can be addressed through general supervisory requirements.

Also on July 14, the PRA published Consultation Paper CP11/26 – A tailored regime for captive insurance, proposing a proportionate prudential framework for captive insurance undertakings. The proposed regime would introduce lower capital and reporting requirements, greater flexibility regarding capital resources and a streamlined authorisation process. The proposals are intended to support the development of the UK captive insurance market while maintaining appropriate prudential safeguards.

In addition, Consultation Paper CP12/26 – Insurance friendly societies, amalgamations and transfers sets out proposed guidance on the statutory processes for amalgamations and transfers involving friendly societies under the Friendly Societies Act 1992. The guidance is intended to provide greater legal certainty and clarify how the relevant legislative requirements should operate in practice.

On July 8, 2026, the PRA issued Policy Statement PS17/26 – Regulated fees and levies: Rates proposals 2026/27, confirming the final regulatory fees and levies payable by PRA-regulated firms for the 2026/27 fee year following Consultation Paper CP7/26.

Finally, on July 29, 2026, the PRA published Policy Statement PS18/26 – Solvency UK: Post-implementation reporting and disclosure amendments and Own Funds permissions update. The statement introduces targeted amendments to the Solvency UK reporting and disclosure framework, including the removal of redundant templates and instructions and corrections to technical issues identified following implementation. It also updates the process and supervisory expectations for applications concerning the classification of certain capital instruments as Own Funds.

The digest also announces that the 2026 Firm Feedback Exercise is expected to launch in mid-August. PRA-regulated firms will be invited to provide feedback on their supervisory experience, including supervisory engagement, regulatory communications, policy development and data requests. The results will help the PRA identify opportunities to improve its supervisory practices and engagement with firms.

Recommendation: 

PRA-regulated firms should review the July Regulatory Digest and assess the relevance of the highlighted consultations and policy changes to their activities, particularly developments affecting third-country exposures, ring-fencing arrangements, captive insurance, Solvency UK reporting and Own Funds permissions. Firms should also consider participating in the 2026 Firm Feedback Exercise once launched.