Integrated Prudential Sourcebook – revised timetable

Consultation Paper 97 “The Integrated Prudential Sourcebook” was issued in June this year when the plan was to implement the rules at the start of 2004 alongside the EU legislation resulting from the new Basel Capital Accord. The Basel timetable is now to be delayed by at least a year and the FSA says that it does not wish to defer all the planned changes to prudential regulation which, according to Clive Briault, Director of Prudential Standards, “should promote competition and ease compliance costs.” Instead it will seek to introduce large parts of the sourcebook early in 2004, holding off only on those sections will alter substantially as a result of the international negotiations. The provisions it proposes to implement in 2004 (see Consultation Paper 115 “Integrated Prudential Sourcebook: timetable for implementation”) relate specifically to: one, systems and controls; two, insurance firms (including friendly societies and the Society of Lloyd’s); three, investment firms not covered by the EU Investment Services Directive; four, operational risk; five, market risk (partly); and six, application and general requirements (also in part). The FSA seeks responses to its draft implementation schedule by 28 February 2002 .