Industry fury over ‘systems & controls’
LONDON – The UK’s Financial Services Authority announced at the September meeting of the Operational Risk Standing Group (ORSG) that it would be delaying, until further notice, the implementation of the Prudential Sourcebook text for ‘systems and controls’ ( see related article, this issue ). The original deadline was the end of this year, and by many industry accounts firms had already spent "eight figures" implementing the new rules. "This will give the FSA real credibility problems in the future," says an industry official.
One op risk manager believes that the "willingness of senior people within firms to take FSA deadlines seriously will be damaged".
Another observer says: "Some firms were a bit miffed by this – these people have created careers around getting their banks ready for op risk. Couldn’t they come under criticism from their bosses, from whom they have been demanding lots of resource so they can get ready, if it now looks like they were calling for more resource than was needed, given the outcome?"
Indu
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