"We have put forward a robust set of proposals that we believe will greatly improve firms' ability to deal with liquidity risks, and thereby increase the overall stability of the UK financial markets."
Paul Sharma, Director of Wholesale and Prudential Policy, Financial Services Authority

On December 4th, the FSA published its Consultation Paper setting out its proposals in relation to liquidity requirements for banks, building societies and investment firms. The proposed rules are based on recently agreed international liquidity standards, in particular the Basel Committee on Banking Supervision's (BCBS) Principles for Sound Liquidity Risk Management and Supervision and also take into account difficulties faced in the market over the past 18 months. While it remains the responsibility of firms' senior management to adopt a sound approach to liquidity risk management, the changes proposed will, in some cases, reshape their business models.

There are four major proposals. First, a new quantitative framework for liquidity risk management which places greater emphasis on firms' ability to assess liquidity risks and develop policies to tackle them. Second, a strengthened qualitative framework for liquidity risk management, with an increased focus on firms' stress testing and contingency funding plans. Third, new liquidity reporting requirements and, fourth, a new approach to firms operating in the UK which are part of a wider UK or international group. 

Conference Chairman
John Tattersall, Partner and Chairman, Financial Regulatory Practice, PricewaterhouseCoopers LLP

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

Expert Speaker Panel
Richard Barfield, Director, PricewaterhouseCoopers LLP
Maarten Geldermann, Head of Quantitative Risk Management, Netherlands Bank and Chair of AIGV Group on Basel Committee
Simon Hills, Director, British Bankers' Association
Mary Frances Monroe, Manager, Supervisory Policy and Guidance, Federal Reserve Bank and member of Basel Liquidity Working Group
Bruce Porteous, Head of Risk Capital Management, Standard Life UK Financial Services
Professor Avinash D. Persaud, Chairman, Intelligence Capital Ltd and Chairman, Warwick Commission on Financial Regulation
David Rule, CEO, International Securities Lending Association
Paul Stanworth, Managing Director, Merrill Lynch
Arnoud Vossen, Secretary-General, Committee of European Banking Supervisors 

The consultation period closes on March 4th and this conference has been timed to ensure that there is a public forum for discussion of the issues concerned sufficiently in advance of this: The contents of the programme will be as follows:

• Keynote address from the FSA
• The lessons of recent events
• Appropriate action to review stress testing and contingency funding scenarios
• Reforming the quantitative requirements
• Co-ordinating with other UK authorities
• Principals of liquidity risk at a time of changing market conditions
• Basel 2 and liquidity policy
  

This event should be attended by representatives of all financial institutions affected by the FSA's new liquidity policy. 

This event is being held at:
Copthorne Tara Hotel London Kensington
Scarsdale Place, Kensington
London, UK W8 5SR
Tel: +44 (0) 20 7937 7211
Fax: +44 (0) 207937 7100
Web: www.millenniumhotels.co.uk/copthornetarakensington

Nearest Tube Station:
High Street Kensington (Circle & District Lines)

Map and Directions

• FSA Liquidity Policy (Documentation)