In January 2008, the Tripartite Authorities (the Bank of England, the HM Treasury and the FSA) published the consultation document entitled “Financial stability and depositor protection: strengthening the framework”. This consultation document set out proposals for the reform of banking regulation in the UK and internationally. One of the five objectives of the proposed reforms was to reduce the likelihood of individual banks facing difficulties.
Consistent with this objective, it was proposed that changes would be made to the framework for the disclosure of liquidity assistance, with the FSA suggesting a limited clarification to the guidance in the FSA Handbook: Disclosure Rules and Transparency Rules sourcebook (DTR). The FSA has now published Consultation Paper 08/13: Disclosure of liquidity support (CP08/13). In CP08/13, the FSA proposes an amendment to DTR. The proposed amendment would clarify that, in a limited set of circumstances, a financial institution admitted to trading on a regulated market that was in receipt of liquidity support from the Bank of England or another central bank may be able to delay the public disclosure of this fact. Comments are invited by 30 September 2008.
View CP08/13: Disclosure of liquidity support, 21 July 2008