PRA reiterates FSCS deposit reporting rules ahead of 2026 year-end filings

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PRA FSCS deposit rules 2026

Highlights

PRA reiterates that firms must follow rules 43.1 (1) and (2) when reporting FSCS-protected deposits, including trust, client money, and safeguarded accounts.
PRA requires firms to correct year-end FSCS deposit reporting by 2026 and contact supervisors if operational issues or uncertainties arise with the guidance.
PRA reminds international branches that FSCS liability reported under rule 43.1 (2) influences permission for UK retail activity, with assessments based on multiple deposit measures per SS5/21.

Reporting expectations before 2026 filings

As set out by the Prudential Regulation Authority, firms must comply with the Depositor Protection Part of the PRA Rulebook when identifying, marking and reporting FSCS protected deposits.

The regulator specifically points to rules 43.1 (1) and (2), which require the class A tariff base reported annually to the Financial Conduct Authority to include covered deposits and the total balance of deposits in accounts where the holder is not absolutely entitled to the funds, or where the balances are safeguarded funds, unless the firm has confirmed they are not covered deposits.

The PRA says amounts in the class A tariff base should be calculated consistently with the single customer view and exclusions view requirements in Chapter 12 of the rulebook. Where a firm cannot determine conclusively that a potentially FSCS-protected deposit is ineligible, that balance should be included under rule 43.1 (2). The regulator says such deposits would typically include balances held in trust accounts, client money accounts and safeguarded accounts.

The PRA expects firms to prepare year-end reporting in line with these requirements and to make any necessary corrections before 2026 year-end reporting. Firms are asked to contact their usual supervisory teams if the guidance raises operational issues or uncertainty.

Implications for UK branches and retail activity

International branches are also reminded to reflect rules 43.1 (1) and (2) when calculating total potential liability to the FSCS for Branch Return purposes. That liability is one of the factors the PRA considers when deciding whether an international bank can carry out retail activities in the UK through a branch, in line with SS5/21.

Where deposits captured under rule 43.1 (2) materially push a branch above the indicative threshold for potential FSCS liability, the PRA encourages firms to explain those deposit types in the Firm Notes field of the Branch Return. The regulator adds that its assessment does not rely on a single hard threshold and instead considers several measures of deposit-taking activity on a firm-by-firm basis.

Our earlier article on Lloyds Banking Group’s Halifax rebrand explained the plan to retire the 173-year-old Halifax name and rename branches under the Lloyds brand during 2025, while keeping customer account details and day-to-day service unchanged. It also highlighted how the shift sits alongside ongoing reshaping of UK high-street banking, including announced branch closures across the group.

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