10 October 2013

GIAJ comments on the FSB implementation guidance for the key attributes of effective resolution regimes

GIAJ responded to the FSB public consultation on the application of the key attributes of effective resolution regimes for financial institutions to non-bank financial institutions and on principles governing information sharing for resolution purposes.

The FSB in conjunction with relevant standard-setters (Committee on Payment and Settlement Systems - CPSS, International Association of Insurance Supervisors - IAIS and  International Organisation of Securities Commissions - IOSCO) has developed Annexes to the Key Attributes that set out guidance on:

• Resolution of Financial Market Infrastructure (FMI) and resolution of systemically important FMI participants;
• Resolution of insurers; and
• Client asset protection in resolution.

The Key Attributes are a central component of the FSB policy measures endorsed by G20 leaders to address the "too big to fail (TBTF)" problem associated with systemically important financial institutions (SIFIs). They set out the core elements considered necessary to make feasible the resolution of financial institutions without severe systemic disruption and without exposing taxpayers to loss. They constitute an 'umbrella' standard that applies for all parts of the financial sector that could cause systemic problems.

The proposed guidance is designed to assist jurisdictions and authorities in implementing the Key Attributes with respect to resolution regimes for FMIs (including central counterparties (CCPs), central securities depositories and securities settlement systems), insurers and firms with holdings of client assets.

The proposed guidance on FMI resolution accompanies the consultative report on FMI recovery published by CPSS and IOSCO to provide a comprehensive set of guidance on recovery and resolution for different kinds of systemically important FMI. The guidance on resolution of insurers complements the policy measures for global systemically important insurers (G-SIIs) published by the IAIS on 18 July, which include recovery and resolution planning requirements for G-SIIs. The guidance on Client asset protection in resolution builds on IOSCO's Consultation Report on Recommendations Regarding the Protection of Client Assets of February 2013.

Full comments

Full implementation guidance

© GIAJ