Critics attack European Union plans to follow Basel II

Critics of the European Union's plans to make all investment firms - not just banks - set aside capital against the risk of losses from operational hazards such as fraud, computer breakdowns and trade settlement failures, say their fears were confirmed in February.

Angela Knight, London-based chief executive of the Association of Private Client Investment Managers and Stockbrokers (APCIMS), says her organisation is "horrified" at the possibility of rises in regulatory charges estimated at up to 250% for some investment firms in the lowest-risk category - those not handling client funds.

Critics say it's utterly inappropriate to calculate an op risk capital charge for investment firms on the same basis as that for banks.

The European Asset Management

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

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