Update

Financial Regulation

	Operational Risk Seminar

The FOA, in conjunction with PricewaterhouseCoopers, held a seminar on 28th June to raise awareness amongst member firms of how the FSA's Integrated Prudential Sourcebook and the Basle Capital Accord, which introduce operational risk management standards and capital charges, could impact them. The seminar outlined the new regulations, timescales and what could be required of firms in terms of procedures for the management and supervision of operational risk as well as the implications for their overall capital charge.

Copies of the slides can be obtained from Florence Briggs at the FOA.

This seminar was the first in a series of FOA initiatives in the area of operational risk. Future work will include further seminars, a member survey and possibly compliance guidelines. For more information contact David Stuart at the FOA.

	VAT and Stamp Duty Relief Tax Seminar

The FOA in conjunction with KPMG has organised a seminar which will take place on 15th July to provide an overview of the application of SDRT and VAT to Equity Derivative and Futures and Options transactions respectively. The seminar will provide practical guidance on such topics as how to prepare for Stamp Office Audits and the treatment of certain categories of expenses for VAT purposes. Anyone interested in attending this complimentary seminar should contact Ann-Mari Burt at the FOA for details.

	Capital Implications of the proposed inclusion of Commodities within the ISD

As has been mentioned elsewhere, the FOA has commissioned a report into the impact of the Requirements of the Capital Adequacy Directive on Commodity firms who are currently not covered by the ISD. This report will be presented to the European Commission in mid July and the FOA then intends to create a CAD Commodities Working Group to take forward the issues arising from the report.

Anyone interested in participating in such a group should contact David Stuart at the FOA.