Criticism mounts against FSA’s stance on liquidity swaps

The FSA has blocked a number of liquidity swap transactions as it consults on the governance of such trades. But many argue that the regulator’s concerns are overblown

Dam

According to the UK’s Financial Services Authority (FSA), liquidity swaps could present a serious concern to the future stability of both the insurance and banking industries. In light of these fears the regulator has suggested that further governance requirements need to be placed upon the transactions to limit the risk potential.

But is this an overreaction? Many in the market believe that the FSA’s concerns are merely a storm in a tea-cup and that further regulation could be detrimental.

So

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here