There are no longer any high impact UK financial institutions that the FSA considers pose a material...
There are no longer any high impact UK financial institutions that the FSA considers pose a material risk due to year 2000 preparations.
The regulator classes risk both by the size of the group - high, medium or low impact - and by state of preparedness, running from red to amber, blue and then green.
In its latest assessment of groups, the FSA has stated there are now no high impact groups rated red and only two medium impact institutions rated red compared to seven at the start
There are 150 financial groups in the high impact area and 300 in the medium impact group which has the same classification criteria as high impact. Red means that the group has a serious risk of material disruption, whereas amber means the group is behind but expected to catch up.
Since the FSA's previous report on 12 July, the proportion of high and medium impact firms rated as amber has reduced from 32% to 28% while the proportion of those rated as blue or green has increased from 66% to 72%.
Michael Foot, managing director of Financial Supervision at the FSA, said: "The end of June was always seen as a key date for firms. This latest assessment shows a strong momentum towards year 2000 readiness.
We are pleased with the response of firms to the intense supervisory oversight, which
we have applied in recent months."
According to the latest assessment of high and medium impact firms 10% are rated as green, 62% as blue or on track to be compliant, 28% amber and 0.5% as red. The year 2000 is a regulatory issue because of its impact on depositor, investor and policyholder protection.
The FSA has a dedicated year 2000 section on its website, which includes publications, guidance for supervisors and links to other year 2000 sites. The site can be found at http://www.fsa.gov.uk/y2kcomp.htm.
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