Note: This group no longer meets as a separate body and relevant issues are now dealt with at the Credit Risk Standing Group. Matters relating to securitisations are handled at the Securitisation Standing Group.
Terms of reference were
Purpose
The purpose of the CRMSG was to help the FSA formulate its policy prior to consultation, it did not replace consultation so may not have definitively resolved any matters discussed.
The CRMSG was 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.
The CRMSG was the medium by which the FSA would:
discuss its approach to, and process for, developing rules and to identify areas where guidance may need to be issued to implement the CRD for Credit Risk Mitigation;
collaborate with firms to develop it's Credit Risk Mitigation policy in the PSB;
collaborate with firms to address issues regarding the implementation of, and the monitoring of compliance with, Credit Risk Mitigation policy in the PSB; and
identify the substantive Credit Risk Mitigation issues that need to be raised with the Basel Advisory Group and the PSB Advisory Group.
Remit
The CRMSG was responsible for:
the Standardised Approach to Credit Risk Mitigation;
minimum requirements under the IRB Approach to Credit Risk Mitigation;
IPRU Credit Risk Mitigation issues; and
Pillar 2 adjustments for Credit Risk Mitigation.
General Credit Risk and Securitisation issues continue to be discussed within separate Standing Groups.
