FSA issues CRD feedback

LONDON – The Financial Services Authority's (FSA) feedback on the regulations it has drafted to implement the Capital Requirements Directive (CRD) has identified a wide range of issues that will require further consideration and discussion between the regulator and the industry. The feedback document on the consultation that took place on CP05/03 is a product of a "good understanding of the industry's points, although more work remains to be done", says Simon Hills, director, prudential capital and risk at the British Bankers' Association. Hills was particularly pleased with the work of the Standing and Expert groups, and the amount and quality of dialogue undertaken at an early stage, particularly compared with some other European regulators.

Within operational risk, the FSA is continuing to focus on a diverse and large number of key areas for further consideration. They are: exemption from the capital requirements for certain types of investment firms; treatment of intra-group income; treatment of outsourcing; income calculation examples; treatment of negative income; income indicator for a firm stopping or selling some of its entities or activities or starting or acquiring new entities or activities; extraordinary or irregular