PRA: PS5/25: Identification and management of step-in risk

Further to chapter 2 of CP22/23, PRA has published feedback and its final policy on the identification and management of step-in risk, which includes a new supervisory statement.  The implementation date for the new step-in risk rules and accompanying policy material is 1 January 2026.  P23/23 also contained proposals related to the large exposures framework (on shadow banking entities and groups of connected clients).  PRA expects to finalise its policy on groups of connected clients as part of its finalisation of proposals included in CP14/24 and then expects to finalise its policy on shadow banking entities in due course.  In the meantime, firms are expected to make every effort to comply with existing EBA guidelines.