FSA is consulting further on its proposals to reform liquidity standards. Its latest paper includes its plans for transitional rules to help firms move to the new approach. FSA had not originally planned transitional measures but responses to previous consultations have made it change its mind. The paper includes details of transitional measures for:  

  • UK incorporated banks currently using the Sterling Stock Liquidity approach;  
  • UK incorporated banks currently using the Mismatch Liquidity approach;  
  • UK incorporated banks that select simplified ILAS;  
  • building societies not within the simplified ILAS regime;  
  • building societies within simplified ILAS;  
  • UK branches of overseas firms without a GLC;  
  • UK branches of overseas firms with a GLC;  
  • full scope BIPRU firms; and  
  • non-ILAS firms.  

The changes would amend BIPRU and SUP. FSA asks for comment by 31 July, a shorter than normal consultation period, because it wants to bring the new regime into place in Q4 2009