Risky business

The FSA looks into its crystal ball again to forecast which risks may be hiding around the corner posing a threat to its statutory objectives and the stability of the firms it regulates. This year, the FSA’s radar has picked up on deteriorating key economic indicators but it saves its more outspoken comments for the quality and impact of International Financial Reporting Standards.

When the Financial Services Authority (FSA) was first established, one of the key arguments in favour of a single regulator unifying banking, insurance and asset management supervision was the ability of such a body to look at risks across the different sectors. As a result, every year the FSA identifies the major risks facing financial services firms in the short term together with longer term risks.