The long road to integration

It was back in June 2001 that the Financial Services Authority issued CP97 “Integrated Prudential Sourcebook” (PSB) in which it took the first mighty steps towards a single prudential regime for banks, building societies, insurance companies, friendly societies and various investment firms. Planned implementation on 1 January 2004 has since been frustrated by delays to revision of the EC capital adequacy framework, which will now take effect in 2005 rather than 2004 , as a result of the extended negotiations on the new Basel Capital Accord. In view of the adjusted timetable, the FSA issued CP115 on implementation options for the PSB last November and published its policy statement this July.