The FSA are continuing to focus heavily on the prudential risks faced by firms and have set out their views on the root causes of the financial crisis and the implications for regulation in this area. The liquidity regime has recently undergone a major overhaul and more onerous systems and controls and reporting requirements have been placed on BIPRU Investment firms which focus not just on individual firms' liquidity but also on market-wide risk.
We have detailed below a number of areas of particular FSA focus in the prudential risk area.