The UK Financial Services Authority ("FSA") published its long awaited consultation and discussion papers on Recovery and Resolution Plans for UK financial institutions. At the height of the liquidity crisis in September 2008, the insolvency of Lehman further plunged the banking sector into a deeper and longer lasting crisis as counterparties and investors saw their assets lost or locked into the long running bankruptcy and insolvency process triggered in the US and the UK.

The FSA papers aims to require UK financial institutions to manage their business in order to reduce the impact of the entities own insolvency on clients money and custody asset holdings and to avoid the need for government credit support involving taxpayers funding.

To view a full copy of the consultation paper, please visit: