On 19 December 2023, the Prudential Regulation Authority (PRA) published a consultation paper, CP28/23, on the leverage ratio treatment of omnibus account reserves and minor amendments to the leverage ratio framework.

CP28/23 sets out the PRA’s proposals to:

  • Introduce new rules to exclude reserves held on omnibus accounts from the leverage ratio, subject to specific conditions, and to add related material to supervisory statement (SS) 45/15 – The UK leverage ratio framework.
  • Make minor amendments to SS45/15 to ensure clarity and consistency with PRA rules on other parts of the leverage ratio framework.
  • Make minor amendments to the leverage ratio disclosure and reporting instructions to provide clarification of the PRA’s expectations and ensure consistency with PRA rules.

The proposals are relevant to Capital Requirements Regulation (CRR) firms and CRR consolidation entities on an individual, consolidated, and where relevant, sub-consolidated basis. None of the proposals in this CP are relevant to credit unions.

The consultation closes on 8 April 2024.