FSB has published three guidance papers on implementing its Key Attributes for recovery and resolution planning (RRP):
- Guidance on developing effective resolution strategies. This guidance covers the preconditions and assessment of resolvability under single and multiple-point of entry resolution strategies. It also summarises common considerations for any resolution strategy, such as loss-absorbing capacity, cross-border cooperation (including confirmation by home authorities that resources will be down-streamed to subsidiaries as needed) and enforceability of the bail-in and of stays in contract termination rights.
- Guidance on identification of critical functions and critical shared services. This guidance offers a three-step assessment for identifying critical functions, and also clarifies that policy should be proportionate to the degree of criticality and be focused on minimising systemic disruption, rather than on rescuing a particular function within a firm. The annex lists functions and shared services that could be critical.
- Guidance on recovery triggers and stress scenarios. This guidance focuses on the need for idiosyncratic and systemic stress scenarios and on the calibration of recovery triggers. Triggers should not activate recovery actions automatically, but rather prompt escalation of problems to senior management.