Community

CP 09/13 on strengthening liquidity standards has made it clear that the FSA means business. Alongside The Turner Review it highlights an overt and ambitious attempt to embed liquidity risk and its management into the everyday processes of a financial institution. Sants' comments before the liquidity consultation paper came out should have served to highlight the intent: "We do want to have a somewhat intrusive approach to regulation." It is clear that financial institutions must now act quickly to get their houses in order against the backdrop of a regulator now unafraid of stepping centre stage.