FSA has published a consultation paper looking at its role in financial stability and depositor protection. The paper suggests some changes to FSA guidance on its internal processes to protect depositors and maintain stability. The consultation is linked to the Banking Bill and the powers FSA would have under it and looks at how to reduce the likelihood of failure and how FSA uses various tools like heightened supervision and information requirements. It also looks at possible contractual barriers with adverse termination clauses and negative pledges. FSA expects firms to mitigate against these risks. The paper also looks at how to reduce the impact of a failure. It suggests some changes to COND setting out how FSA will assess certain conditions under the new Banking Act. FSA wants comments by 8 March 2009 and will publish final guidance in conjunction with its finished work on liquidity and other banking reform measures.