Loss survey supports arguments against capital charges, say fund managers

Losses from seven categories of operational risk, ranging from internal and external fraud to system failures and settlement errors, were modest or minimal compared with those in other business lines, the managers say.

They say the survey evidence supports the view that it is inappropriate to calculate an op risk capital charge for asset management and broking, as proposed by international banking regulators and the European Commission, on the same basis as that for the other activities of banks

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