Consultation on the Basel III Prudential Roadmap: large exposures and general matters (No. 1 2026)

Summary

This is a JFSC consultation paper, part of its ongoing Basel III Prudential Roadmap, seeking industry feedback on proposed prudential rule changes covering general matters, market risk and trading book/counterparty credit risk, large exposures, securitisation, and capital and ratios. It only directly affects Jersey Incorporated Banks (JIBs), though implementation will indirectly affect their customers.

• General matters: JFSC will incorporate relevant amendments from the PRA's PS19/25 (securitisation, credit ratings clarifications) where they affect areas already following the PS9/24 Rulebook, and will publish TS 2016/1801 rating mapping content for JIBs; consideration of other PRA changes is paused until 2028.
• Market risk and trading book: Proposes largely retaining current simpler Jersey rules given minimal exposures, with only consequential amendments linked to SACR and credit risk mitigation changes.
• Large exposures: Proposes closely aligning with PRA rules in PS14/25, moving to a net exposure basis, adopting PRA exemptions for low-risk/sovereign exposures, raising the bank exposure carve-out to £139 million, retaining the existing Concession Limits framework for intra-group exposures, and adopting PRA approaches for sovereign exposures and trustees within a new Large Exposures Guidance Note replacing the current Concession Limit guidance note.
• Securitisation: Proposes following PRA's PS19/25 approach closely, an area not previously addressed in the earlier Roadmap consultation.
• Capital and ratios: Only consequential amendments proposed, mainly to incorporate the output floor requirement and systemic buffer, building on the August 2025 Consultation.

The JFSC invites written responses to eleven consultation questions by 5:00pm on Friday 13 March 2026, either directly or via Jersey Finance Limited's coordinated industry response. Feedback will be published in April 2026 with near-final draft codes; final prudential codes are expected in H1 2026, effective from 1 July 2027 (with early adoption permitted from 1 January 2027), and full adoption by all JIBs is required from H2 2027.

Key obligations

• Submit consultation responses to the JFSC by 5:00pm on Friday 13 March 2026
• If submitting via Jersey Finance Limited's coordinated industry response, provide comments to JFL by 13 March 2026
• Industry bodies or associations responding should provide a summary of the individuals and/or institutions they represent
• From H2 2027, all Jersey Incorporated Banks must fully adopt the new prudential regime (with optional early adoption from 1 January 2027)

Applies to

Jersey Incorporated Banks (JIBs)

Deadlines

• Friday 13 March 2026, 5:00pm: Deadline to submit consultation responses to the JFSC (or to Jersey Finance Limited for the coordinated industry response)
• April 2026: JFSC to publish consultation feedback and near-final drafts of new/revised prudential code requirements
• H1 2026: JFSC to publish final prudential codes and consult separately on changes to Pillar 2 and Prudential Reporting
• 1 January 2027: Earliest date JIBs may adopt the new prudential codes under transitional provisions
• 1 July 2027: Effective date of the final prudential codes
• H2 2027: All JIBs must fully adopt the new regime