UK regulator the Financial Services Authority has changed its plan for the introduction of radical new rules that will require UK firms to reform how they manage their cashflow amid criticism the proposal will jeopardise the competitiveness of London as a financial centre.
The UK markets watchdog said in December last year it had "hopes to introduce new rules in October 2009" but yesterday confirmed it wanted the liquidity rules to "be in effect from the fourth quarter of 2009", effectively giving UK-based institutions an extra two months to comply.