The European Commission has issued a Consultation Paper on a possible framework for the recovery and resolution of non-bank financial institutions. The Paper looks at ascertaining how and when the failure of a financial institution other than a bank can threaten financial stability. The main institutions considered in this respect are financial market infrastructures, such as central counterparties and central securities depositories, and systemic insurance companies. The Paper also considers what arrangements could be needed to prevent their failure from compromising financial stability.

This consultation is open until 28 December 2012.