View more on these topics

FSA warns firms of “substantial” liquidity cost

FSA managing director of the risk division Sally Dewar has warned that the new liquidity requirements for firms will bring “substantial” costs.

Speaking at the FSA’s liquidity conference today, Dewar said: “Clearly, the costs to put in place more robust systems for liquidity risk management and to build up liquidity buffers, are substantial. Such costs will be most significant for those firms which have had the least satisfactory arrangements up to this point.”

Dewar also said the FSA recognises the importance of agreed international standards on liquidity.

She said: “I emphasise that we strongly support the Basel Committee work to deliver improved international liquidity standards. Meanwhile, the structure of our new quantitative regime is pretty flexible and should be able to accommodate new international standards.

“And meanwhile, the new FSA qualitative standards fully implement the Basel Committee’s ‘Principles for Sound Liquidity Risk Management and Supervision’, as published in September last year.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com