FSA has expressed doubts that the fourth Capital Requirements Directive and CRR package (CRD4) can apply from 1 January 2013, given that negotiations between Parliament and Council have not yet finalised. Despite this, FSA has reminded firms that they should continue with their preparatory work. It has also reminded firms that the recent recommendations of the Financial Policy Committee include the possibility of imposing capital cushions above those in Basel 3 and the need for banks to increase their equity by retaining earnings. (Source: FSA Statement Regarding CRD IV Implementation)