On September 30, the UK Financial Services Authority (FSA) published a speech given by its Chairman, Lord Turner, on essential regulatory reforms.

Lord Turner’s speech outlined three key proposals:

  • Higher capital and liquidity standards, plus more volatility buffers. Lord Turner believes a satisfactory capital requirements directive would be brought under Basel III.
  • EU measures to solve the problem of “too big to fail” systemically important financial institutions
  • Macroprudential analysis and policy tools to reduce excessive credit growth. Again Lord Turner advised EU-level implementation from the European Systemic Risk Board.

To read the speech in full, click here.