This paper describes the approach taken by the Norwich and Peterborough Building Society (the Society) in implementing models, policies and practices to meet the expected requirements of the third Capital Adequacy Directive as described in consultation papers issued by the Basel Committee, the...

The Financial Services Authority (FSA) is about to implement wholesale reforms of the regulatory structure of advice in the retail financial services sector. Instead of having to choose between a “tied adviser” or an “independent financial adviser” (IFA) under a “polarised” regime,...

This paper presents the findings of a survey of UK banks and building societies undertaken to understand management’s reasons behind their decisions about capital. The survey shows that: (a) firms use different approaches to form their views about “desired” capital; (b) the main factors...

This paper forms part of a presentation on the same subject given by the author to the Basel II conference organised by the Securities Institute in London during March 2004. It is a case study based on the author’s experience in Barclays Bank on the preparations required for successful...

This paper looks at the aims and objectives behind the Market Abuse Directive, looking at some of its main features, and considers some of the changes that are expected to be made to the existing UK regime.

The Greek insider trading and market manipulation (market abuse) regime is in the process of transformation by the new Code on Capital Market, which internalises the provisions of the 2003 Market Abuse Directive. The new market abuse prohibition follows an effect‐oriented approach, which, in...

If financial services institutions (FSIs) do not comply with a variety of new regulations they can face criminal charges. Despite budget pressures they must therefore continue to invest in technologies in support of their compliance mandate. This paper describes the major regulations applying to...

There is a gap linking organisational risk profiles to real people. Yet people are core to all risk/reward decisions, both at an organisational and a personal level. If an organisation is the aggregate of the decisions made by its people, how can aggregation be carried out sensibly; how can...

“Economic capital (EC) is in – Value at Risk (VaR) is out!” This statement by James Lam, well known to be the first Chief Risk Officer (CRO) worldwide, at the April 2004 Enterprise Risk Management (ERM) Symposium in Chicago, caused quite a reaction by the attendees. What is EC? Why are...

In general, the 1990s was a decade of considerable and broad economic growth. It was also characterised by extensive corporate (financial) sector failure in South‐East Asia. Since 2001 a number of major (non‐financial) corporations have failed in the USA and Europe. The majority of these...