When the FSA published its enhanced liquidity regime in October 2009 it said that it would not tighten quantitative standards before economic recovery was assured given that all firms were experiencing a market wide stress. The FSA also committed itself to give a further update in Q1 2010.

The FSA has now published a liquidity calibration statement. The FSA states that it believes that it would be premature to increase liquidity requirements across the industry at the current time.

This position will be reviewed later on in the year with a further announcement in Q4 2010.

View Liquidity calibration statement, 8 March 2011