2015.Fall 18c - outdated - Credit Risk

chrisboersmachrisboersma
in OSFI.MCT

Reviewing the question isn't this material covered under 4.3.3.4?:

The capital requirements for acceptable collateral, less the excess, are reported as part of capital required for credit risk (reference chapter 6).

It should be easy for CAS to re-write this question so it falls into 4.3.3.4. Thoughts?

Comments

  • grahamgraham

    I see your point because the calculation for:

    • the reduction in capital required for excess collateral

    is in section (4.3.3.4) which is still on the syllabus.

    But the calculation pertains to credit risk which is in chapter 6, which isn't on the syllabus. There is no way to know for certain, but my judgment is that they intended for details of the calculation for capital required for credit risk to be removed. I reached this conclusion by asking myself what other reason there could be for removing most of chapter 6 and I couldn't think of anything else.

    I did not remove it entirely from the BattleActs content however, and the practice template for that question is still available. If you feel strongly about it, my recommendation is to play the odds and study the rest of the syllabus first, then come back to it towards the end of your studying.

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