EU Commission considers changes to op risk framework

The EU Commission is considering modest changes to the operational risk framework of its proposed capital adequacy directive (CAD), in response to comments received to its most recent draft, according to a source within the organisation.

Although some will be disappointed that the changes are not more wide-ranging, the alterations will go some distance to reducing the volume of objection that many financial services executives had to the proposals.

First, the bad news. Under the op risk framework, the EU Commission proposed that asset management firms operating with a limited licence be allowed to opt out of the op risk calculation because of their limited exposure to the risk. “A number of respondents have suggested