On 3 November 2015, the Financial Stability Board (FSB) published a consultation paper on “Developing Effective Resolution Strategies and Plans for Systemically Important Insurers”. The consultation paper develops themes first documented in the FSB’s “Key Attributes of Effective Resolution Regimes for Financial Institutions” (the “Key Attributes”).  Amongst other things, it discusses the way in which […]

Mark Carney has today been widely misreported as hailing the imminent demise of TBTF. Announcing the consultation phase of the FSB’s Total Loss Absorbing Capital (TLAC) proposals, he said, “Agreement on proposals for a common international standard on total loss-absorbing capacity for SIBs is a watershed in ending “too big to fail” for banks. Once […]

The FSB has released a consultation paper on the cross-border recognition of resolution action. The FSB TBTF report previously identified cross-border legal uncertainty as one of the main stumbling-blocks to the effective resolution of a SIFI subject to multiple jurisdictions. Key Attribute (KA) 7.5 mandates the mutual cross-border recognition of resolution authority and action; existing […]

On 8 January 2014, the Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO) published a consultation paper on “Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions” (NBNI G-SIFIs).  The consultation period closes on 7 April 2014. The consultation details a framework which is broadly consistent with existing methodologies […]

On 25 October 2013, the Financial Stability Board (FSB) published a list of: responses to its 12 August 2013 consultation on the Application of the Key Attributes of Effective Resolution Regimes to non-bank financial institutions; and responses to its 12 August 2013 consultation on Information sharing for resolution purposes.

The FSB issued a report on Monday, ahead of the St. Petersburg G20 meeting, assessing progress on the problem of Too Big To Fail financial institutions. Aside from important judgements as to whether they should actually be called Too Interconnected etc., a valid answer to the TBTF question has the potential to render much of […]

On 28 August 2013, the Financial Stability Board (FSB) published a press release announcing the launch of a proposed Assessment Methodology for the Key Attributes of Effective Resolution Regimes for Financial Institutions.  The Key Attributes of Effective Resolution Regimes for Financial Institutions (‘the Key Attributes’) were endorsed by G20 Leaders at the Cannes Summit in […]

On 12 August 2013, the Financial Stability Board published a consultation document regarding the “Application of the Key Attributes of Effective Resolution Regimes to Non-Bank Financial Institutions”, inviting comments by 15 October 2013. The consultation document proposes draft guidance on how the Key Attributes should be implemented with respect to systemically important non-bank financial institutions. […]

12th August 2013. The CFTC issued a press release, announcing the approved final rules to implement enhanced risk management standards for systemically important DCO’s (“SIDCO”). The rules are intended to cohere with the BIS-IOSCO Principles for Financial Market Infrastructures recommendations, enabling the FSB-assessed SIDCO’s to continue as Qualifying Central Counterparties under international capital regulations. The […]