FPC and PRA are consulting on changes the FPC proposes to make to the leverage framework, and how PRA will implement them. PRA’s proposals will depend on Treasury revoking certain parts of the CRR, which, if approved by Parliament, will take effect from 1 January 2022.
The FPC proposes that the PRA should implement and extend the leverage framework that currently applies to major banks and building societies to cover additionally each major investment firm, as well as each bank, building society or investment firm with significant non-UK assets and holding companies approved or designated by PRA with consolidated situations comparable to any other relevant firm.
PRA is consulting on quantitative thresholds for applicaton of these requirements.
Comments are due by 24 August.