Prudential Regulation Authority Rulebook

1.

Institutions shall report to their competent authorities on:

1. (a) own funds requirements, as set out in Article 92, and the leverage ratio and if applicable the countercyclical leverage ratio buffer;
2. (b) the requirements laid down in Articles 92a and 92b, for institutions that are subject to those requirements;
3. (c) large exposures as set out in Article 394;
4. (d) liquidity requirements as set out in Article 415;
5. (e) the aggregate data for each national immovable property market as set out in Article 430a(1);
6. (f) the requirements and guidance set out in provisions implementing Directive 2013/36/EU UK law qualified for standardised reporting, except for any additional reporting requirement in provisions implementing point (j) of Article 104(1) of that Directive;
7. (g) the level of asset encumbrance, including a breakdown by the type of asset encumbrance, such as repurchase agreements, securities lending, securitised exposures or loans.

2.

In addition to the reporting on the leverage ratio referred to in point (a) of the first subparagraph of paragraph 1 and in order to enable the competent authorities to monitor leverage ratio volatility, in particular around reporting reference dates, LREQ firms shall report specific components of the leverage ratio to their competent authorities based on averages over the reporting period and the data used to calculate those averages.

2A.

For the purposes of paragraph 2, the average leverage ratio for a quarter must be calculated by an LREQ firm as its capital measure divided by its exposure measure where:

1. (1) the capital measure is the arithmetic mean of the firm’s tier 1 capital (leverage) on the last day of each month in the quarter ending on the relevant reporting reference date; and
2. (2) subject to (3), the exposure measure is the sum of:
1. (a) the arithmetic mean of the firm’s total exposure measure in relation to on-balance sheet assets and securities financing transactions on each day in the quarter ending on the relevant reporting reference date; and
2. (b) the arithmetic mean of the firm’s total exposure measure excluding on-balance sheet assets and securities financing transactions on the last day of each month in the quarter ending on the relevant reporting reference date.
3. (3) Until 1 January 2023 the exposure measure is the sum of:
1. (a) the arithmetic mean of the firm’s total exposure measure in relation to on-balance sheet assets on each day in the quarter ending on the relevant reporting reference date; and
2. (b) the arithmetic mean of the firm’s total exposure measure excluding on-balance sheet assets on the last day of each month in the quarter ending on the relevant reporting reference date.

3.

In addition to the reporting on prudential requirements referred to in paragraph 1 of this Article, institutions shall report financial information to their competent authorities where they are one of the following:

1. (a) an institution that is subject to section 403(1) Companies Act 2006;
2. (b) a credit institution that prepares its consolidated accounts in accordance with the international accounting standards pursuant to point (b) of Article 5 of Regulation (EC) No 1606/2002.

4.

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5.

The reporting on financial information referred to in paragraph 3 shall only comprise information that is needed to provide a comprehensive view of the institution's risk profile and the systemic risks posed by the institution to the financial sector or the real economy.

6.

The reporting requirements laid down in this Article shall be applied to institutions in a proportionate manner, having regard to their size, complexity and the nature and level of risk of their activities.

7.

[Note: Provision left blank]

9.

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10.

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11.

Competent authorities may waive the requirement to submit any of the data points set out in the reporting templates specified in these rules where those data points are duplicative. For those purposes, duplicative data points shall refer to any data points which are already available to the competent authorities by means other than by collecting those reporting templates, including where those data points can be obtained from data that is already available to the competent authorities in different formats or levels of granularity; the competent authority may only grant the waivers referred to in this paragraph if data received, collated or aggregated through such alternative methods are identical to those data points which would otherwise have to be reported in accordance with these rules.

[Note: This is a permission under section 144G and 192XC of FSMA to which Part 8 of the Capital Requirements Regulations applies]