ICELAND: FSA Issues Discussion Paper on Financial Undertaking

Tuesday November 21 2017

The Financial Supervisory Authority has issued a discussion paper containing draft updated benchmark and methodology of the Financial Supervisory Authority for the assessment and evaluation process of financial undertakings (SREP).

The updated document outlines changes to capital adequacy requirements. In Chapter 3 of the paper there is guidance on the criteria which is employed to assess capital adequacy requirements. There are also three annexes containing the Financial Supervisory Authority’s criteria for capital requirements for credit and compression risk, this is supplemented by provisions on  market risk and fixed interest rate risk assessments. The third annex explains the methodology of the Financial Supervisory Authority in deciding on capital adequacy.

The document is 16/2017 and is available under the forum on the website of the Financial Supervisory Authority.

For additional information please click the link above.