European asset managers gear up for CAD3

European asset management firms wanting to comply with the most sophisticated measurement method allowed in the revised Basel Accords—the advanced measurement approach (AMA)—must prepare now, as it requires them to have a whole set of advanced risk management tools in place, including a historical operational loss database.

Even so, many of Europe’s asset management firms are waiting until the final shape of the Basel Accord revisions—and therefore the European Union’s capital adequacy directive (Cad3)—is announced before investing in new technology infrastructure.

But not everyone is holding back. In fact, several European investment firms are in advanced preparations for this new regimen. For example, Adam Germany, the domestic asset management arm of Allianz Group, with €192 billion of assets under

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