Industry Groups
Basel/CRD Implementation Advisory Group (BIAG)
The BIAG brings together senior management drawn from the FSA, HM Treasury, the Bank of England, trade associations and regulated firms who are responsible within their respective organisations for providing strategic leadership on Basel/CRD implementation. The purpose of the group is to:
- discuss the FSA's strategic objectives for the UK implementation of the Capital Requirements Directive;
- review success against those objectives periodically, identifying ways in which those objectives might be better
- achieved and reviewing whether those objectives remain relevant;
- exchange information between the participants on important policy, practical and timetable issues that arise on the FSA, HMT and industry implementation projects; and
- review the forward agenda and key milestones of the FSA's timeline for implementation.
Current Standing Groups
There are ten standing groups dealing with issues arising from the CRD and the revised Basel Accord. The purpose of the standing groups is to help the FSA formulate its policy before consultation; they do not replace consultation so may not definitively resolve any matters discussed.
Capital and Groups Standing Group (CGSG)
The purpose of the CGSG is to provide a forum for representatives of the banking and investment firm sector to discuss implementation issues relating to the Capital and Group Risk modules of the Integrated Prudential Sourcebook. These include:
- scope of application;
- definition of capital consolidation and pillar I;
- To advise us (the FSA) on methods of assessment and the ongoing monitoring of individual capital requirements and group capital requirement.
- To help encourage all relevant institutions, practitioner groups and trade associations to play a full part in developing emerging standards and in our consultation processes.
- To help us to assess the overall costs and benefits for UK financial institutions of proposals on the implementation of these requirements in the Integrated Prudential Sourcebook.
- To provide a regular communication channel between us and the industry to inform European developments and negotiating tactics.
Commodity Standing Group (COMSG)
The COMSG is a pre-consultation forum for discussing:
- Policy issues arising from MiFID and the recast CAD (part of CRD) including the identification of the main impacts of implementing MiFID and CAD on the Commodity Derivatives industry and other connected concerns.
- How we will deal with these issues in Prudential Source Book (PSB) text.
- Issues about the practical implementation of – and monitoring of compliance with – policy in the PSB, MiFID and CAD.
- Domestic policy issues not covered by MiFID or CAD, for example the continuation of a light touch regime for those firms that are still exempt.
- Any future review of the commodity regime undertaken by the Commission, if this review occurs.
Covered Bond Standing Group (CBSG)
The purpose of the CBSG is to help the FSA formally consult on the implementation of an EU recognised covered bond regime.
The CBSG is a pre- consultation forum for discussing:
- CB issues arising from the implementation of the CRD
- The most efficient and effective means of implementing CB regulation
- Issues regrading the practical implementation of a CB regime and how this will affect UK issuers and investors
- Domestic CB issues not covered by the CRD
Credit Risk Mitigation Standing Group (CRMSG)
The CRMSG is a pre-consultation forum for discussing:
- Credit Risk Mitigation policy issues arising from the revised Basel Accord (Basel) and the Capital Requirements Directive (CRD);
- the FSA's articulation of its potential solutions in Prudential Source Book (PSB) text;
- issues regarding the practical implementation of, and monitoring of compliance with, Credit Risk Mitigation policy in the PSB; and
- domestic Credit Risk Mitigation issues (e.g. IPRU) not covered by Basel or the CRD.
Credit Risk Standing Group (CRSG)
The CRSG is a pre-consultation forum for discussing:
- Policy issues arising from MiFID and the recast CAD (part of CRD) including the identification of the main impacts of implementing MiFID and CAD on the Commodity Derivatives industry and other connected concerns.
- How we will deal with these issues in Prudential Source Book (PSB) text.
- Issues about the practical implementation of – and monitoring of compliance with – policy in the PSB, MiFID and CAD.
- Domestic policy issues not covered by MiFID or CAD, for example the continuation of a light touch regime for those firms that are still exempt.
- Any future review of the commodity regime undertaken by the Commission, if this review occurs.
Related Expert Groups (EG): Low Default Portfolio EG; Use of External Models EG; Procyclicality EG; Standardised Approach EG; Aggregation EG; Large Exposures and Solo Consolidation EG; Covered Bonds EG; Concentration Risk EG.
Market Risk and Trading Book Standing Group (MRTSG)
The MRTSG is a pre-consultation forum for discussing:
- Market Risk and Trading Book policy issues arising from the revised Basel Accord (Basel), the Capital Requirements Directive (CRD) including the recast Capital Adequacy Directive (CAD), and the Basel-IOSCO Trading Book Review (TBR);
- the FSA's potential solutions as set out in the Prudential Source Book (PSB);
- issues regarding the practical implementation of, and monitoring of compliance with, Market Risk and other Trading Book policy in the PSB; and
- domestic Market Risk and other Trading Book issues (e.g. IPRU) not covered by Basel or the CRD.
Operational Risk Standing Group (ORSG)
The ORSG is a pre-consultation forum for discussing:
- Operational Risk policy issues arising from the revised Basel Accord ('Basel') and the CRD;
- The FSA's articulation of its potential solution in Prudential Source Book ('PSB') text;
- Issues regarding the practical implementation and monitoring of compliance with Operational Risk policy in the PSB, and;
- Domestic Operational Risk issues, for example those in CP 142, not covered by Basel or the CRD.
Related Expert Groups (EG): AMA EG; Corporate Governance EG.
Pillar Two Standing Group (PTSG)
The PTSG is a forum for discussing:
- Pillar Two policy and implementation issues arising from the revised Basel Accord ('Basel'), the Capital Requirements Directive ('CRD') and the Committee of European Banking Supervisors ('CEBS')/Level 3;
- The FSA proposed Pillar Two text in the Handbook;
- The practical implementation and monitoring of compliance with Pillar Two requirements; and
- Any other Pillar Two issues particular to UK domestic policy
Related Expert Group (EG): Pillar 2 EG.
Securitisation Standing Group (SSG)
The SSG is a pre-consultation forum for discussing:
- Securitisation policy issues arising from the revised Basel Accord (Basel) and the Capital Requirements Directive (CRD);
- the FSA's articulation of its potential solutions in Prudential Source Book (PSB) text;
- issues regarding the practical implementation of, and monitoring of compliance with, Securitisation policy in the PSB; and
- domestic Securitisation issues (e.g. IPRU) not covered by Basel or the CRD.
