UK PRA PS 19/25—Securitisation Prudential Reforms

1. Background and Next Steps/Implementation Timing

This briefing, which is relevant to the prudential treatment of securitisations in general (traditional and synthetic) by UK PRA regulated banks, covers the securitisation-related content of PRA Policy Statement 19/25 (PS 19/25, published 28 October 25). PRA 19/25 sets out the PRA's approach in relation to the securitisation prudential reforms envisaged in its October 2024 Consultation Paper 13/24 (CP13/24) that the PRA regards as conceptually linked to the UK's Basel 3.1 implementation. It includes (among other developments – see below) reforms relating to SEC-SA p factor (a major development), the prudential treatment of HMT MGS, the asset risk weight limits for prudential STS eligibility, & refinements to the credit risk mitigation approach hierarchy for securitisations. In line with the UK's delayed Basel 3.1 implementation, these reforms will take effect on 1 January 2027.