Regulation

A series on the regulation that bears on how banks value their positions and control the numbers behind their accounts. It is written from a UK perspective, with the EU and US shown for comparison, and each page ends with the view from valuation control.

Questions this series answers

• Which regulatory capital deductions depend on valuation?

• How does regulation penalise valuation uncertainty?

• How do margin and clearing rules affect the valuation of derivatives?

• What do conduct and governance rules expect of valuation control?

• How do timeliness, completeness and accuracy apply to risk data and to valuation?

• How does Sarbanes-Oxley make the controls over fair value testable?

• Basel Framework Overview
• Regulatory Capital: Where Valuation Reaches CET1
• Prudent Valuation
• Margin and Clearing: Collateral and Valuation
• Conduct and Market Abuse
• Governance: Model Risk, Accountability and Data
• Sarbanes-Oxley: Internal Controls over Financial Reporting

Warning

Regulation changes often, and implementation dates for the Basel 3.1 and FRTB reforms have moved several times. Treat the dates on these pages as a guide and check the current PRA, FCA, EBA and US agency publications before relying on them.