We briefly consider the FSA's policy statement on
capital standards.
17 December 2010 was a busy day for the FSA. In addition to
publishing its policy statement 'Revising the Remuneration
Code', the FSA also published its policy statement
'Strengthening Capital Standards 3'.
This policy statement deals with feedback and final rules in
respect of CP10/17 and CP10/22. In CP10/17, the FSA provides
feedback on previous consultation papers relating to CRD 2, as well
as consulting on CRD 3 aspects relating to core tier one capital,
large exposures and operational risk. CP10/22 included consultation
on parts of CRD 3, namely in relation to capital floors for firms
using advanced approaches, residential mortgage losses given
default (LGD) floors and covered bonds. Unlike the majority of CRD
3 amendments, which require implementation by 31 December 2011,
these amendments were required to be implemented by 1 January
2011.
