Next month, industry practitioners will have four opportunities to provide feedback to the Committee of European Banking Supervisors (CEBS) on its risk related proposals, including those around concentration risk and stress testing. The regulatory body has organised four separate hearings at its London premises to garner feedback on a number of its recent consultation papers, all of which involve technology and systems considerations.
There may be troubles ahead for the UK Financial Services Authority (FSA) with the impending departure of current CEO Hector Sants in the summer, but, in the meantime, the regulator has pledged to support the data vendor community in adapting to the new regulatory order. To this end, the regulator is strengthening its efforts around its independent software vendor (ISV) discussion group, which aims to provide vendors with a forum in which to air their issues.
There is a clear need within the counterparty risk manager community for more tools and better access to data related to credit risk analytics, according to Jonathan Di Giambattista, managing director of risk and performance analytics at Fitch Solutions. Di Giambattista bases his judgement on a recent survey of 85 counterparty risk managers in buy side firms carried out in October last year by the solutions provider owned by ratings giant Fitch.
The UK Financial Services Authority (FSA) has indicated that is "disappointed" by the "unclear articulation" of firms’ risk appetites in the Internal Capital Adequacy Assessment Process (ICAAP) submissions it has received from investment firms so far. The regulator indicates that these firms should bear a number of factors in mind when preparing for their next submissions, including providing the right level of risk related data in order to the FSA to be able to accurately judge their risk management capabilities.
The Committee of European Banking Supervisors (CEBS) was originally established as a forum to lead the charge towards a new Basel framework but in recent years it has become increasingly focused on the practical realities of risk management. Giovanni Carosio, deputy director general of the Bank of Italy who took over the reins as chairman of CEBS last September from Kerstin af Jochnick, recently elaborated on the regulatory body’s changing role and the position it feels the European Banking Association (EBA) should adopt in the building of a new IT infrastructure for regulatory data exchange in Europe.
Last week, the UK Financial Services Authority (FSA) bolstered its campaign to foster greater risk management responsibility within financial institutions with a new consultation paper (to add to the growing mountain) on effective governance standards. This is all part of what the regulator calls its “supervisory enhancement programme”, seemingly aimed at scaring CEOs into compliance with its requirements via the introduction of significant influence functions (SIF) interviews.
A-Team Insight Exchange is a new event series for 2010, which will combine A-Team’s expertise in financial markets IT with thought leadership from world-class technology innovators and practical experience from financial market practitioners.
Following the relocation of its head office from Luxembourg to London last year (see here), international financial reporting standards (IFRS) and risk management solution vendor Fernbach Software has redoubled its efforts to help firms to meet the UK Financial Services Authority’s (FSA) liquidity risk reporting regime requirements, explains Mike Hamm, managing director of the vendor, to A-Team Insight. The vendor is planning to launch its solution at the upcoming British Bankers Association (BBA) liquidity conference in April (see here) with great fanfare. Moreover, as part of its push to increase its market share overall, the vendor is also signing a range of strategic partnerships, the most recent of which was with operational risk solution provider Optial this week.
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