FSA makes changes to non-EEA capital rules

From 31 December 2011, firms that report at a consolidated level to the FSA are no longer allowed to use non-EEA regulators’ standardised rules for calculating their group capital requirements.

Firms affected are likely to incur compliance costs associated with changing their internal systems and controls around regulatory reporting.

They will need to make sure that appropriate systems, controls and oversight procedures are in place around data and the calculation tools and methodologies required. This is particularly important bearing in mind the increased regulatory scrutiny around regulatory reporting generally.

PwC can help by:

  • Giving expert technical advice on the implementation of the requirements
  • Performing a health check on your new processes to assess the reliability of the calculations
  • Giving assurance on the accuracy of the calculations
  • Reviewing the systems and controls environment and making recommendations for improvement.