In October 2008, the EU Commission proposed revisions to the Capital Requirements Directive designed to reinforce the stability of the financial system, reduce risk exposure and improve supervision of banks that operate in more than one EU country. These proposals should be adopted in May 2009.

At the same time, there has been questioning of whether Basel 2, which is in the course of its implementation around the world (the CRD is the EU implementation of it), is still relevant or whether the financial crisis has shown it to be inadequate. Basel 2 has three "pillars": Pillar 1 is a formulaic approach to capital based on applying risk percentages to assets in a structured way; Pillar 2 requires management to assess the risks of the business more holistically and the capital needed to support those risks, and (critically) the regulators to review and approve that approach; Pillar 3 requires extended disclosure. The implementation of Pillar 3 has not yet taken place, but there is a general consensus that models used in Pillar 1 were inadequate, in particular they did not force banks to build counter-cyclical provisions into their capital rations, and that the correct application of Pillar 2 will be essential if Basel 2 is to prove itself.

The disruption in the market has brought in two other factors that cut across the pillars. Firstly, the whole issue of valuation and how Basel standards and accounting standards of valuation interconnect or conflict. Secondly, there are the implications of large scale government intervention, especially in the context of the process of re-capitalisation as envisaged in Pillar 2.

Attendance at this conference will be invaluable for senior management of all banks and building societies, including those individuals responsible for compliance, legal affairs, group risk management, credit risk, operational risk, operations, regulatory reporting and financial reporting.

Conference Chairman
Patrick Fell, Director, PricewaterhouseCoopers LLP

Keynote Address
Paul Sharma, Director, Wholesale and Prudential Policy, Financial Services Authority

Expert Speaker Panel
Richard Barfield, Director, PricewaterhouseCoopers LLP
Basil Foulkes, Head of Capital Risk, Britannia Building Society
Simon Gleeson, Partner, Clifford Chance LLP
Bill Hayward, Head of Capital Reporting, Barclays
James Hewer, Director, Banking and Capital Markets, PricewaterhouseCoopers LLP
Simon Hills, Director, British Bankers' Association
Professor John Kay, Author and Economist, Visiting Professor, London School of Economics
Ian Kingswood, Senior Manager, Regulatory Policy, HSBC
Irina Molostova, Associate, Allen & Overy LLP
Patrick Pearson, Head of Unit, Banking and Financial Conglomerates, Internal Market and Services Directorate, European Commission
Katharine Seal, Director, London Investment Banking Association

This conference is timed to coincide with a critical juncture in both the history of CDR and Basel 2 and will address the essential issues in the following sessions:

• Keynote address from the FSA
• The EU position
• Learning the lessons - ensuring significant counter-cyclicality
• Pillar One - The process of implementation and current market conditions
• Pillar Two - ICAP in a credit crunch world
• Pillar Three - Prospects and the needs of users
• Valuation and fair value accounting
• The new role of government in investment 

The event is being held at:
Le Meridien Piccadilly Hotel
21 Piccadilly
London W1J 0BH
Tel: 0207 734 8000
Fax: 0207 437 3574
Website: www.lemeridien-piccadilly.com

Nearest Tube Stations:
Piccadilly Circus (Piccadily & Bakerloo Lines)

Accommodation
In-Event UK Ltd has negotiated discounted rate for delegates if they choose to stay at the conference venue.

For further informarion on accommodation please contact In-Event on: +44 (0)1483 740736 or email event@in-event.co.uk.

• Reform of Basel 2 and the Capital Requirements Directive (Documentation)