The FSA has said it will delay introducing stricter liquidity requirements for firms until the economic recovery is assured.
The regulator published its enhanced liquidity regime in October 2009 which introduced both tougher qualitative and quantitative standards for firms.
At that stage it said that it would not tighten quantitative standards before economic recovery was assured.
In a planned update, the regulator now believes that it would be premature to increase liquidity requirements across the industry. It said it will review this later in the year with a further announcement in Q4 2010.
In the meantime, the FSA said it will continue to work with firms that are most affected by the new regime and will focus on the steps they are taking to mitigate liquidity risk.
