
	Home European Regulation UK Business Conduct Regulation Prudential Regulation Financial Crime Operational Issues Forums Events Training and Education Membership

Update

ISSUE 66, August 2007

Prudential Regulation


	Look out for…

The latest edition of the FSA's Handbook Development newsletter (No 90), indicates, inter alia , that the following consultation papers, discussion papers and feedback statements, which are likely to be of interest to FOA members, are due to be published over the coming months:

Star Rating*

Title

Expected date

Consultation period

Expected date of feedback

N/A

Review of solo/group capital requirements – Discussion paper

Sept 2007

3 months

Q1 2008

N/A

Definition of regulatory capital for CRD firms (Own funds review) – Discussion paper

Dec 2007

3 months

June 2008

Review of Accounting and Prudential Requirements – Consultation paper

Dec 2007

3 months

Q2 2008

N/A

Review of the regulatory framework in the commodity derivatives sector – Discussion paper

Q4 2007 / Q1 2008

3 months

TBC

* As explained in Handbook Development newsletter No 47, 3 star CPs are “high-profile consultations, and major policy changes affecting a large number of consumers or financial sectors,” 2 star CPs contain “other important policy changes” and 1 star CPs contain “minor changes.”


	Have you read…?

CP/PS/DP	Title	Consultation period ends / Comments by
CP	CP07/17 – Integrated Regulatory Reporting (IRR): Changes to reporting affecting most firms	5 Oct 2007
CP	CP07/15 – External Assurance on Regulatory Returns	17 Oct 2007


	Netting agreement legal opinions

The FOA maintains a Master Netting Agreement (MNA) supported by a library of legal opinions affirming its validity in 55 different global jurisdictions. The MNA and the supporting legal opinions are available to members for a one off charge.

Work is nearing completion on an update of both the MNA and the legal opinions, in conjunction with the wider update of FOA documentation in preparation for MiFID and the CRD.

Any members who do not currently subscribe to the library but would be interested in further information or existing members who are unsure whether they have subscribed to the update should contact Simon Andrews

Further details on the current library can be found here


	Response to CP07/15 – External Assurance on Regulatory Returns

CP07/15 proposes that the routine audit of regulatory returns should be abolished for non-BIPRU investment firms and instead replaced with a risk based approach using the targeted application of “section 166 Return Assurance Reports” (s.166 RAR).

The FOA is drafting a response to this CP, taking into account the views of both auditors and regulated firms. If you have any comments on the proposals or would otherwise like to contribute to the response please contact Simon Andrews


	Risk Management course – Member feedback requested

The FOA is in discussion with Risk Audit over the provision of a one-day training course for FOA members covering such topics as:

• Overview of key market, credit and operational risks

• Managing client credit risk

• Managing proprietary trading risk

• Key operational controls

• Information technology

• Management of regulatory risk

• Other operational risks

The course is primarily designed to appeal to compliance officers and risk managers working in small to medium sized firms who feel that they would benefit from an overview of the key risk areas which apply to their business and the ways in which those risks can most effectively be managed, although representatives from firms of all sizes would be welcome.

If you wish to express an early interest in this course and would like to propose particular topics that you feel should be covered please contact Simon Andrew