FSA publishes rules on liquidity requirements

The overhaul is based on the lessons learned since the start of the credit crisis in 2007. The FSA's new requirements are designed to protect customers, counterparties and other participants in financial services markets from the potentially serious consequences of imprudent liquidity risk management practices. Specifically, the rules include: • An updated quantitative regime coupled with a narrow definition of liquid assets; • Over-arching principles of self-sufficiency and adequacy of liquid resources; • Enhanced systems and controls requirements; • Granular and more frequent rep...