View more on these topics

FSA to delay liquidity paper, says BDO

The FSA may delay its ruling on its Strengthening Liquidity Standards consultation paper until Q4 this year, according to BDO Stoy Hayward.

Initially the FSA was due to release its feedback statement in April with the rules to be implemented by October 2009. But BDO says it is now likely that the rules will only be implemented “well into 2010”.

The paper proposes requirements for banks, building societies and investment firms to develop individual liquidity risk assessments which will need to be reviewed, assessed, documented and stress-tested.

In addition, firms will be required to hold a reserve of highly liquid and high quality assets to act as an additional defence for firms.

BDO head of the financial services regulatory practice Fiona Raistrick says: “As this was one of the key elements highlighted in the Turner Review just a week ago, we were surprised to hear the FSA is considering delaying the rules until the end of the year.

“We would question why the delay is required and more importantly, what the FSA is planning on adding to the requirements that warrant such a delay.”

But Cicero director Iain Anderson says the delay makes “complete sense”.

He says: “Clearly what is being unleashed by Turner and De Larossiere in Europe has to be linked together with the overall shape of regulation. Strategically it makes sense.”

The FSA was unavailable for comment.


Bully off

Ethical investment has proved popular with many members of the public. After the recent debacle in the markets occasioned by the lack of ethics in investment banking, the topic of ethics is on everyone’s lips.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm