The Financial Stability Board has published a statement summarizing the feedback it received to its June 2019 consultation on firms’ public disclosures on resolution planning and resolvability. The consultation sought feedback on a series of questions regarding general and firm-specific disclosures made by systemically important banks and other firms subject to resolution planning requirements. In launching the consultation, the FSB was considering publishing guidance on public disclosures on resolution planning and resolvability, depending on the responses elicited by the consultation. On the basis of the responses received, however, the FSB has decided not to develop further guidance at this stage and will reconsider whether further guidance is required in 2022.
Key responses included:
- Suggestions that national regulators publish simple descriptions of their resolution frameworks on their websites, including decision trees and non-firm specific overviews of their funding plans;
- Support for consistency of firm-specific disclosures, although concerns were raised about the possible risks of such disclosures, including the need to protect commercially sensitive information and to preserve flexibility in the actual implementation of resolutions; and
- Consensus that additional total loss absorbing capacity disclosures were not necessary to assess resolvability.
Feedback on the FSB’s June 2019 consultation on the solvent wind-down of derivatives and trading portfolios, which was alongside the FSB’s public disclosures on resolution planning consultation, was also published today.