FSA Publishes Financial Risk Outlook
Location: London
Author:
FSA Staff
Date: Thursday, March 11, 2010
The Financial Services Authority (FSA) yesterday published its
Financial Risk Outlook (FRO) outlining the main risks and issues present
in its operating environment, affecting firms, markets and consumers.
This year’s FRO is divided into four sections:
- Macroeconomic background and outlook looks at how
fiscal and monetary policy support has limited the scale and
duration of the global recession, and the future impact of its
removal;
- Financial Stability and Prudential Risks and Issues
highlights the importance of effectively managing prudential and
financial stability risks for all stakeholders in the financial
system. The chapter explores the new regulatory frameworks
being developed to strengthen firms’ capital and liquidity
management under stressed conditions and the FSA’s updated
stress test;
- Market Risks and Issues explores risks derived
directly from the crisis and other ongoing risks to which
regulators and market participants need to respond;
- Retail Conduct Risks and Issues identifies retail
conduct of business risks, some of which have resulted from
today’s specific economic circumstances but many of which are
rooted in enduring features of retail financial services
markets: such as business models that cross subsidise
loss-making core products and very high margin products.
The analysis which lies behind the FRO helps inform how the FSA sets
priorities and deploys its resources. The FSA’s Business Plan, published
next week, describes those priorities and the resulting resource
requirements.
Click here for the
Financial Risk Outlook.
To subscribe or visit go to:
http://www.riskcenter.com
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