After 10 Months of FSA Groundwork, the First Liquidity Risk Deadline Hits Tomorrow
London – 30 November 2009. The FSA’s Policy Statement 09/16, released on 5 October, gave 2,800 firms approximately 40 working days to implement the first stage of the new liquidity risk rules. It’s hoped that this will improve on the old regime, established during 1996 and 1997, which proved highly inadequate in the face of the recent financial services crisis. With a well-versed global political will to address the associated liquidity issues, the FSA will tomorrow see the implications of laying down their first gauntlet – the systems and controls requirements .
PJ Di Giammarino, CEO of JWG, comments: “If the FSA have done the job right, the financial institutions will have started focusing their attention on the monumental task of creating industry standards, upgrading their legacy infrastructures and ensuring that senior management have a view of the business at a far deeper and more granular level.
“The CEO of the FSA, Hector Sants, claims to have dispelled the view that the UK regulator is a 'soft touch' and has proclaimed that individuals should be very afraid of the FSA. This first deadline will be a chance for the UK to prove its regulatory mettle on the international stage.
“The holistic risk management reform envisioned by this regime will take years to realise, but very soon supervisors will have a new liquidity risk dashboard that contains a full set of data and analysis tools to control a firm’s business. Change is clearly in the making.”
This week JWG will release the results of its year long research programme – ‘Liquidity risk: a dummies’ guide’. For more information see www.jwg-it.eu or www.liran.eu.
About JWG: JWG seeks to be recognised by regulators, financial institutions and technology firms as the independent analysts to help determine how the right regulations can be implemented in the right way. JWG is unique. Its status as an independent think-tank permits collaboration with regulatory and industry bodies, financial institutions and technology firms without serving the interests of any constituent over another.
For immediate release
PJ Di Giammarino: email@example.com +44 (0) 7811 430 503
Louisa Excell: Louisa.firstname.lastname@example.org +44 (0) 20 7608 8350