# The Capital Buffers and Macro-prudential Measures Regulations 2025, Regulation 17: O-SII buffer rates: the FPC framework


(1) The FPC must establish a framework for O-SII buffer rates in the United Kingdom in accordance with this regulation (“the FPC framework”).
(2) The FPC framework must contain the following elements—
(a) a set of criteria for assessing the extent to which the failure or distress of a relevant O-SII might pose a risk to the financial system of the United Kingdom,
(b) a methodology for measuring those criteria and giving a relevant O-SII a single score in relation to those criteria, and
(c) in relation to each score that a relevant O-SII may receive, a buffer rate that corresponds to the score.
(3) For the purposes of paragraph (2)(a)—
(a) a relevant O-SII is in distress only if it experiences a significant deterioration in its financial situation, and
(b) the criteria to be specified must each be—
(i) measurable, and
(ii) capable of being applied to a relevant O-SII on an individual basis, a sub-consolidated basis and a consolidated basis.
(4) The only buffer rates that the FPC may specify for the purposes of paragraph (2)(c) are 0%, 1%, 1.5%, 2%, 2.5% and 3%.
(5) The FPC must ensure that the way in which buffer rates correspond to scores in the FPC framework—
(a) is clear, precise and unambiguous,
(b) ensures that a score corresponds to one buffer rate only,
(c) may not be expressed in terms of a discretion conferred on a person or body (including the FPC), and
(d) may be expressed by way of a formula, an algorithm, a graph or a table.
(6) The Bank must publish each element of the FPC framework, together with the FPC’s justification for each element.

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Source: https://www.legislation.gov.uk/uksi/2025/653/regulation/17 (the official version)
Page: https://openlegislation.uk/capital-buffers-and-macro-prudential-measures-regulations-2025/regulation-17
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.