FSA slates banks AMA preparation

LONDON – In a draft of an industry feedback document obtained by OpRisk & Compliance magazine, the UK Financial Services Authority blasted banks in its jurisdiction for their lack of preparation for the advanced measurement approach applications. The document, Capital Requirements Directive Implementation – Industry Feedback: Advanced Measurement Approaches , had not been publicly released in its final form at press time.

"Implementation focus continues to be on developing and rolling out data collection tools and techniques," says the paper. "Work on a clear articulation of risk appetite, a stable and responsive model, and relevant, timely, forward-looking management information are significantly less developed. Limited progress has been made in areas such as data quality, correlation, the 'use test', and validation."

Even more disturbingly, the paper says "at present, some firms are taking a minimalist