FSB reports on progress in reforming resolution regimens & resolution planning

On 12 November, the Financial Stability Board (FSB) published a progress report to the G20 on the reform of resolution regimes and resolution planning for GSIBs. The report reviews what has been achieved so far and sets out further steps to fully implement the FSB Key Attributes . The FSB highlights that only a few jurisdictions already comply with all the principles of Key Attributes and that there is still substantial work to be done in the coming months. In that vein, the FSB establishes the following priorities for 2015 to ensure that all G-SIFIs are resolvable: • Finalise the common international standard on total loss absorbing capacity (TLAC) • Achieve the broad adoption of contractual recognition of temporary stays on early termination and cross-default rights in financial contracts and finalise FSB guidance on effective cross-border recognition • Develop further guidance to support resolution planning by home and host authorities, in particular with regard to funding arrangements and operational continuity of core critical services • Promote the full implementation of the FSB’s requirements for resolution regimes and resolution planning beyond the banking sector

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