Some EU Firms Face Unfair Capital Charges, Says FSA
LONDON -- A large number of UK and other European investment firms may face increases in capital charges that are out of proportion to the risks they pose to the financial system, according to the FSA, the UK’s chief financial regulator.
Financial Services Authority (FSA) chairman Howard Davies said this could result from the European Union’s proposals to require all banks and investment firms in the 15-nation EU to set aside capital against operational risk from 2004.
He said it would be helpful
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