PS6/25 – International firms: Updates to SS5/21 and branch reporting
Overview
On 20 May 2025, the Prudential Regulation Authority (PRA) published Policy Statement PS6/25, setting out updates to Supervisory Statement SS5/21 on the supervision of international banks operating in the UK. These updates are intended to strengthen the PRA’s approach to the supervision of both branches and subsidiaries, while supporting the UK’s competitiveness.
Key Updates
The key updates set out in this PS are summarised below:
Branch Risk Appetite:
The PRA has increased the thresholds that determine when a firm’s retail deposit-taking activity must be conducted through a subsidiary rather than a branch:
Retail deposits threshold: increased by 30% to £130 million
Small business deposits threshold: increased by 30% to £650 million
New indicative threshold: £300 million for instant access retail and small business deposits
These changes provide branches with greater flexibility to operate without requiring them to become subsidiaries, while maintaining appropriate supervision of retail operations.
Implementation Date: Effective immediately from 20 May 2025.
Booking Model:
The PRA clarified expectations regarding firms’ booking arrangements, with a focus on:
Transparency of risk location
Clear accountability
Appropriateness of the UK entity's control over risk-taking and management
These changes primarily affect UK trading entities with investment banking operations, particularly those with international exposures.
Implementation Date: Effective immediately from 20 May 2025.
Reporting Changes:
Revisions have been made to the Branch Return Form:
Firms must now report instant access deposit balances and the number of customers
No longer required to provide information on transactional accounts
Revised reporting rules aim to reduce regulatory burden while preserving essential supervisory insights
Implementation Date: New rules take effect from 1 March 2026.
For more information, please contact:
Josh Nowak
Managing Director
Risk & Regulatory Consulting
T: +44 (0)7587 720988
E: josh.nowak@katalysys.com