Alternative Investment Management Association Representing the global hedge fund industry
After witnessing the global economic impacts of the failure of systemically important bank and non-bank financial institutions (SIFIs), G20 leaders agreed that action was necessary.
During the Summit of November 2010 in Seoul, the G20 called upon the Financial Stability Board (FSB) to consider and develop concrete policy recommendations in order to address problems associated with the failure of such institutions.
On 9 July 2011, the Financial Stability Board (FSB) published a consultation entitled ‘Effective resolution of systemically important financial institutions’. The consultation proposed a comprehensive package of policy measures to improve the capacity of national authorities to deal with failing SIFIs. After consideration of the responses received, the FSB released its ‘Key Attributes for Effective Resolution Regimes’ in October 2011.
The FSB ‘Key Attributes’ have now been endorsed by the G20 and form the basis of the recovery and resolution initiatives currently being undertaken globally at both national and international level.
In August 2013, the FSB released a consultation on the 'Application of the Key Attributes of Effective Resolution Regimes to Non-Bank Financial Institutions', including FMIs. AIMA submitted a joint response alongside MFA. The FSB also released a consultation on the 'Assessment Methodology for the Key Attributes of Effective Resolution Regimes for Financial Institutions'. This deadline for comments is 31 October 2013.