FSA/CEBS co-ordination under fire

LONDON – Operational risk executives have expressed their frustration at what they see as the lack of co-ordination between the UK's Financial Services Authority (FSA) and the Committee of European Banking Supervisors (CEBS) on key parts of the Basel II implementation strategy.

Op risk executives were particularly frustrated by CEBS' publication of Guidelines on the implementation, validation and assessment of advanced measurement (AMA) and internal ratings (IRB) based approaches. The paper – which came out on July 11 – aims to lay out a "common understanding among European supervisory authorities of the procedures to be used in processing, assessing, and making decisions on the application of an institution to use" the advanced approaches. It also sets out guidance