Prudential Regulation Authority Rulebook

4.1

For 12 months from the date that this Part comes into force a firm must, instead of completing the data item referred to in 3.1, complete the data item FSA084 using the template for the data item set out here.

4.2

When completing the data item in 4.1, the average leverage ratio for a quarter must be calculated by a firm as its capital measure divided by its exposure measure where the:

1. (1) capital measure is the arithmetic mean of the firm’s tier 1 capital on the last day of each month in the quarter ending on the relevant quarterly reference date; and
2. (2) exposure measure is the arithmetic mean of the firm’s total exposure measure on the last day of each month in the quarter ending on the relevant quarterly reference date.