UK experience in conducting supervisory stress testing of investment firms: advantages and disadvantages for further implementation in Russian jurisdiction

This article discusses the requirements for stress testing procedures of investment firms in the UK within the prudential norms enshrined in national legislation at the level not only of investment firms, but also for banks, and building societies. International approaches to overseeing the ongoing investment firms stress testing were analyzed to identify advantages and disadvantages that can be considered in the future not only by the Russian regulator when you build the procedure of the Supervisory stress testing, but also investment companies, carrying out stress testing at the level of the organization. The article contains the requirements for investment firms, which according to prudential requirements are required to carry out the stress testing procedure. In addition, there is a detailed description of the UK requirements for the stress testing procedure in terms of key sources of risk, the content of stress scenarios, requirements for the frequency of the reporting format provided by the results of stress testing, as well as in terms of measures that need to be carried out in case of negative results of stress testing. The final part of the article is devoted to the essential provisions of the methodology and procedure of stress testing of supervised organizations in the jurisdiction of the UK, which can be implemented for the Russian realities, taking into account the current requirements of the legislation.