Ms Brenda McVeigh:

What underpins all asset and liability management, ALM, considerations is the appropriateness for each institution to take its own risk-based approach and decide for itself its own exposure to financial irregularities, if one wanted to call it that. Specifically, the European Commission has said that no member state should be overly prescriptive because, as Mr. Bruen said, goal posts change and each institution has to be able to set its own risk appetite. Just this morning, in an experts group meeting, the Commission let us all know that the 27 member states have now come back with their own lists, guidelines and views on what a PEP is. The Commission had hoped to do that job earlier as part of the new package and rule book. They had hoped to consolidate lists across member states to provide pan-European guidance on what a PEP is, but it has not done it yet. The Commission told us this morning that it is now in the process of doing that. It has admitted that it has been a very difficult process. Different member states have different views about what a PEP is and what an associate of a PEP is, but it is there now. The next step will be for the Commission to analyse that and then, under the directives, namely Article 28, I think, endorse it and give its view on what a PEP is, based on the feedback from member states. The Commission hopes to issue a consolidated list - in the context of guidelines - about what a PEP will be by the end of the year. There will be a pan-EU basis for it.