FRSGlobal, the only global provider of risk and regulatory compliance solutions on a unified platform, has announced it is offering all official regulatory bodies a version of its risk and regulatory software without charge to better facilitate prudent oversight of the financial markets and help provide a single, global regulatory model for the 21st Century.
On Radio 4's Today programme Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), stressed that 'stricter rules to control the market are essential' and agreed the need for a global regulator to ensure that standards are implemented.
World Bank Group President, Robert B Zoellick, described how we currently are trying to affect 'changes for the 21st Century …. using a 20th Century hierarchical structure' and shared his vision for a cooperative network of regulators'.
Steve Husk, CEO of FRSGlobal commented: 'We are prepared to provide free of charge our global regulatory solution to every regulator to help create a 21st Century platform to capture the complexity of today's financial institutions. Our solution is already being used by many of the major financial institutions to report to regulators in 30+ countries.'
Steve Husk went onto say, 'Challenging times require different business strategies from boom times, and we believe that the rules of the game have changed over the last three weeks. FRSGlobal has provided global risk and regulatory solutions to the banking industry for almost twenty years and we welcome the opportunity to give something back.'
FRSGlobal's offer to regulators will provide them with a proven regulatory model that allows information from differing financial entities, countries and consolidations to be held in a coherent manner. It further converts this information to regulatory intelligence that will allow regulators to achieve a much clearer picture of the interactions between financial entities.
Selwyn Blair-Ford, Senior Domain Expert at FRSGlobal stressed 'As much as a global regulatory body seems a good idea, individual regulators may struggle with how to implement a comprehensive and effective global framework, but would see the obvious benefits of having an information platform that is common between regulators - making it easy to share information.'
If regulators took up this solution they would be able to achieve a much clearer and more dynamic view of exposures between market participants, which will include securitisation and credit derivative exposures. It is further hoped that the availability of the FRSGlobal model will also allow regulators to apply enhanced analytical techniques and identify further systemic risk from which they can launch anticipatory action where required.
One of the key reasons for the continuing crisis is the lack of transparency of counterparty risk by the banks and the regulators. It is clear that any solution that enables the regulator to clearly and dynamically analyse the interrelationship between different counterparties would accelerate the rush to achieve clarity.
One of the key reasons for the continuing crisis is the lack of transparency of counterparty risk by the banks and the regulators. It is clear that any solution that enables the regulator to clearly and dynamically analyse the interrelationship between different counterparties would accelerate the rush to achieve clarity. Bob McDowall, Research Director, Europe at TowerGroup said 'The lack of counterparty risk transparency and how regulation is needed to strengthen counterparty risk are essential prerequisites in today's environment. All regulators are likely to require the power to see and consolidate all positions and risks of all banks on a coherent basis."
The proposal is supported by The Carlyle Group and Kennet Partners, the private equity investors in FRSGlobal. 'The real win is that we can start giving regulators counterparty risk visibility across multiple banks in weeks - in this way we are giving the government a great deal of free value.' said Javier Rojas, Managing Director of Kennet Partners LLC.