FSA issues new handbook guidance for building societies

29 March 2010 at 17:00

FSA issues new handbook guidance for building societies The Financial Services Authority (FSA) has announced additional handbook guidance to ensure those building societies that switch away from traditional business models have the right risk management systems and skills in place to operate safely.

Changes will come into effect on April 1st 2010 and building societies will have until September 30th to note any potential gaps between their risk management and business model.

They will then need to agree with the FSA what actions are needed to address such "mismatches".

"The FSA expects building societies to re-examine their risk management and business models in the areas of liquidity, wholesale funding and lending to ensure that they are aligned," the regulatory body said in a statement.

According to the regulatory body, the changes will not restrict organisations' freedom.

The FSA recently announced new rules to remove commission bias from advice on retail investment products, which the body believes will restore consumer confidence in the market. ADNFCR-3006-ID-19694226-ADNFCR

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