On 25 January 2013, the FSA published Policy Development Update Number 155.  This confirms that a Policy Statement on Recovery and Resolution Plans is now due to be published in Q2 2013.  The Policy Statement is the long-awaited follow-up to CP 11/16: “Recovery and Resolution Plans” published in August 2011.

Introduction On 13 January 2013, the Presidency of the EU Council published a compromise proposal regarding suggested amendments to Articles 1 to 36 of the Directive establishing a framework for the recovery and resolution of credit institutions and investment firms (the “RRD”).  The most noteworthy amendments are highlighted below. Early Intervention Triggers to Early Intervention […]

On 21 January 2013, the European Commission published a timetable for certain legislative proposals that it expects to adopt between 1 January 2013 and 31 December 2013, including the following: Q3 2013: Directive/Regulation on the reform of the structure of EU banks (i.e. the Liikanen reforms) Q4 2013: Framework for crisis management and resolution for […]

Last week the EU Parliament published a draft opinion of it Committee on Legal Affairs dated 14 December 2012 regarding the ‘proposal for a directive of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms’ (the “RRD”). The proposed amendments contained within the […]

Introduction On 11 January 2013, the Alternative Investment Management Association (“AIMA”) published its response to the EU Commission’s Consultation on a Possible Recovery and Resolution Framework for Financial Institutions Other than Banks (the “Consultation”). Identifying Systemic Importance AIMA supports the introduction of a robust and effective framework for dealing with the recovery and resolution of […]

Background Broadly, the term ‘financial market infrastructure’ (“FMI”) refers to: central counterparties (“CCPs”); payment systems; central securities depositories; securities settlement systems; and trade repositories. FMIs contribute to maintaining and promoting financial stability.  However, they also concentrate risk and their disorderly failure could have systemically important consequences.  This brings into focus the issues of how to […]

On 23 December 2012, ISDA published a letter sent in response to the EU Commission’s Consultation on a possible recovery and resolution framework for financial institutions other than banks. ISDA’s response focuses mainly on RRP for Central Clearing Counterparties (CCPs).  It believes that a common resolution framework should apply to all FMIs (and not just […]

Introduction On 21 December 2012, the European Commission published a summary of the replies received to its October 2012 consultation on the recommendations of the high-level expert group on reforming the structure of the EU banking sector (the “Liikanen Group”).  It also published links to individual responses. In total, the Commission services received 89 responses […]

Introduction On 5 December 2012, the European Insurance and Occupational Pensions Authority (EIOPA) published its response to the EU Commission Consultation on a possible recovery and resolution framework for financial institutions other than banks. RRP for Insurers EIOPA supports the principle of RRP for insurers, but emphasises that (re)insurers are believed to have a more […]