2.1 Before making any proposed rules, the PRA is required by FSMA to have regard to any representations made to it, and to publish an account, in general terms, of those representations and its feedback to them. [Sections 138J(3) and 138J(4) of FSMA.]

2.2 The PRA has considered the response received to the CP. This chapter sets out the PRA’s feedback to this response, and its final decisions.

2.3 The points in the response received have been grouped as follows:

- potential PRA actions in response to contingent leverage risks;

- scope and materiality of contingent leverage risks;

- other clarifications of the ICAAP expectations;

- frequency and commencement of the reporting requirement for LREQ firms;

- reporting on written credit derivatives;

- ‘daily averaged’ basis of reporting;

- potential overlap with other reporting; and

- other reporting clarifications.

Potential PRA actions in response to contingent leverage risks