UK looks over to Europe in responses to CP189

London -- Responses to the operational risk portion of the Financial Services Authority’s (FSA) consultation paper on Basel II and the EU’s Capital adequacy directive (CAD) demanded more information from the regulator. But behind the scenes, respondents noted that, in reality, that consultation paper was already obsolete as it was drafted before the publication of the latest draft of the CAD, and that much of the debate had moved on as a result of discussions in the EU Commission and Parliament since then.

CP189: Report and first consultation on the implementation of the new Basel and EU capital adequacy standards had originally been published in July 2003, with comments due in mid-November 2003. The next draft of the document, which will be titled Rules and guidance to implement the new Basel and EU capital adequacy standards and ICAS framework for investment firms and deposit takers is to be produced in the third quarter. It will also include a feedback statement to CP189.

"I think that the real