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Please note that this group has now been replaced by the Credit Risk Standing Group.

Credit Risk Implementation Advisory Group Terms of Reference

 

Purpose of Group

1. To provide a forum for discussing issues relating to the implementation of the requirements for the credit risk treatments under the new Basel Accord/Directive on risk based capital requirements for credit institutions and investment firms (cumulatively referred to in this document as the ‘Capital Accord’)
   
   
2. To advise the FSA on standards for access to and means of assessment and ongoing monitoring of:
   • internal ratings-based approaches for credit risk;
   • credit risk mitigation treatments and other elements of the Revised Standardised approach; and
   • pillar 2 adjustments for credit risk.
     
     
3. To help encourage all relevant institutions, practitioner groups and trade associations to play a full part in developing emerging standards and in the consultation processes established by the FSA.
   
   
4. To help the FSA to assess the overall costs and benefits for UK financial institutions of proposals related to the implementation of the requirements for the credit risk treatments under the Capital Accord.

 

Meetings

The group will meet about every four weeks.

Outputs

The group will produce papers as required on specific issues relating to the implementation of the requirements for the credit risk treatments under the new Capital Accord. These may be used for discussion between group members and to further FSA policy development in this area.

Composition

The group will be chaired by the FSA and will consist of representatives from trade bodies and firms. Secretarial support will be provided by the FSA.

Confidentiality

In general, the papers and discussions of the group are not strictly confidential. Members of the group are free to make reference to the proceedings of the group in order to take soundings in the sector from which they are drawn. It is understood that this will be done with due discretion and circumspection.

When, exceptionally, strict confidentiality is sought, the need for it will be raised explicitly.