The Financial Stability Board (FSB) is seeking comments on its Consultative Document on the Identification of Critical Functions and Critical Shared Services for Systemically Important Insurers (‘consultative document’).
The Key Attributes of Effective Resolution Regimes for Financial Institutions (“Key Attributes”) adopted by the FSB Plenary and endorsed by G-20 Leaders at the Cannes Summit are an essential component of the FSB’s package of policies to reduce the risks of moral hazard and the potential for systemic disruption associated with systemically important financial institutions (SIFIs). TheKey Attributes call on jurisdictions, among other things, to put in place an on-going recovery and resolution planning process to reduce the potential for failure and promote resolvability as part of the overall supervisory process. Such a planning process is required for all global systemically important financial institutions (G-SIFIs) and for any other firm assessed by national authorities as potentially having an impact on financial stability in the event of its failure (list of G-SIFIs published by the FSB in November 2011).