On 18 August 2016, the Financial Stability Board (FSB) published its fifth report, entitled “Resilience through resolvability: moving from policy design to implementation”, to the G20 on progress on resolution. The Report reviews what has been achieved so far and sets out further actions to fully implement the FSB’s key attributes of effective resolution regimes for financial institutions and ensure that all global systemically important financial institutions are resolvable. The FSB also sets out in the Report the findings from the annual resolvability assessment process for global systemically important banks and global systemically important insurers.
The Report concludes that, while some work is still necessary to implement the policies which have been developed to address the risks posed by too-big-to-fail banks. In addition, further steps must be taken to establish effective policies and regimes for systemically important non-bank financial institutions, in particular central counterparties and systemic insurers. The Report concludes that renewed efforts are required to ensure that regimes consistent with the key attributes are in place in all FSB jurisdictions. However, the Report does acknowledge that legislative reforms in many jurisdictions have meant that good progress has been made in implementing the key attributes.
The FSB has identified a number of priorities for the remainder of 2016 and 2017. One of these priorities is to monitor implementation of the FSB’s June 2016 guidance on developing effective resolution strategies and plans for systemically important insurers along with developing a key attributes assessment methodology for insurers.
A link to the Report can be found here.