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Financial Services Authority

Volume 716: debated on Tuesday 5 January 2010

Question

Asked by

To ask Her Majesty's Government how many people are employed by the Financial Services Authority to investigate the risk management of banks; and, of those, how many have qualifications in risk management. [HL712]

To ask Her Majesty's Government whether the Financial Services Authority, in assessing the risk factors applying to each bank, (a) examines the trading strategy of each individual trader, (b) examines the mathematical models used by the bank, (c) reviews the mathematical models used, (d) compares the mathematical models used by different banks, and (e) quantifies the systemic risk arising from the use of trading strategies and mathematical models with common characteristics. [HL713]

The issues raised in these questions are operational matters for the Financial Services Authority, whose day-to-day operations are independent from Government. I have asked the FSA to write directly to the noble Lord on these matters.