More NewsRegulators Failed to Co-ordinate Over Basel II – FSA Chief

Regulators Failed to Co-ordinate Over Basel II - FSA Chief

The drafting of the new Basel II capital adequacy rules for banks has been criticised by John Tiner, chief executive of the Financial Services Authority (FSA). The head of the UK’s financial regulator expressed concern at a conference in London that securities regulators were not consulted prior to the drafting of the Accord. ‘It is clearly unsatisfactory that the banking regulators alone should set standards for capital adequacy that then need to be adopted by securities regulators,’ he said, according to a report in the FT. The Basel Committee has allowed super-regulators such as the FSA to work alongside central bankers in drafting Basel II, but, in the US, only bank regulators such as the Federal Reserve and the Controller of the Currency are represented. The notable absence of the Securities and Exchange Commission (SEC) had caused a number of problems as the SEC is introducing new capital adequacy rules aimed at broker/dealers, said Tiner. These proposals differ in a number of key areas, most notably as the SEC rules may allow long-term non-subordinated debt to count as capital. ‘If permitted this would clearly set a substantially lower standard for available capital than applies under Basel,’ explained Tiner.

Related Articles

Infosys Finacle to power Santander UK’s international cash management system

More News Infosys Finacle to power Santander UK’s international cash management system

3w The Global Treasurer
Preparing for GDPR? Here’s four things to consider

More News Preparing for GDPR? Here’s four things to consider

4m Elliott Wiseman
Cash flow in focus for investors

Cash Management Cash flow in focus for investors

5m Conor Deegan
Treasury TV: Karen Pugsley, Domino's Pizza Group

More News Treasury TV: Karen Pugsley, Domino's Pizza Group

5m Victoria Beckett
Treasury TV: Yeng Butler compares US and European MMF reforms

Compliance Treasury TV: Yeng Butler compares US and European MMF reforms

5m Victoria Beckett
Treasury TV: Tim de Knegt, The Port of Rotterdam

10 Minutes With The Treasury Treasury TV: Tim de Knegt, The Port of Rotterdam

5m Victoria Beckett
Banks are selling clients short with short dated cash deposit U-turns

Banking Banks are selling clients short with short dated cash deposit U-turns

5m Victoria Beckett
What does sterling’s Brexit boost mean for UK manufacturers?

More News What does sterling’s Brexit boost mean for UK manufacturers?

6m Tasja Botha