23 November 2013

Responses to FSB's 'Assessment Methodology' consultation: BBA, Deutsche Bank, ISDA et al

British Bankers's Association

Given that the Key Attributes set a single standard for resolution regimes, it is appropriate for compliance to be assessed on the basis of a single comprehensive methodology. That said, care must be taken to ensure the assessment is proportionate to the complexity of the financial system and firms to which it applies. The proposed methodology appears to strike an appropriate balance. In particular, the Explanatory Notes are to be welcomed and should play an important role in guiding the interpretation of the often high-level Key Attributes.

Full response

Deutsche Bank

The FSB states that the score of the jurisdiction being assessed cannot be negatively impacted where lack of cooperation or agreement from another jurisdiction has prevented implementation, subject to the assessed jurisdiction demonstrating attempts to resolve this difficulty. This is an appropriate response in those circumstances. However, clearly the outcome is detrimental. Deutsche Bank therefore suggests that the Explanatory Notes (ENs) also make clear that jurisdictions are expected to escalate the issue on a timely basis, both domestically (i.e. to government) and to the FSB and G20.

Full response

International Swaps and Derivatives Association

ISDA fully supports the Key Attributes, and has made regular reference to them in its ongoing dialogue with national and regional authorities in relation to financial institution resolution. ISDA welcomes the development of a proposed methodology for assessing implementation of the Key Attributes, as it believes it is highly important, for a variety of reasons, that there be consistency of rules and standards for financial institution resolution globally. These reasons include promoting a level playing field internationally and enhancing legal certainty, and therefore market stability, through common, and therefore commonly understood, rules and standards.

Full response

See also responses from:

• American Council of Life Insurers
• European Central Securities Depositories Association
• Institute and Faculty of Actuaries
• Institute of International Finance
• International Association of Insurance Supervisors
• National Organization of Life & Health Insurance Guaranty Associations and National Conference of Insurance Guaranty Funds
• Polish Financial Supervision Authority

Original FSB-consultation document

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