Alternative Investment Management Association Representing the global hedge fund industry
The UK has committed, along with all other G20 nations, to implement the FSB Key Attributes for Effective Resolution Regimes for Systemically Important Financial Institutions.
The UK already has in place a special resolution regime (SRR) for deposit taking banking entities. However, on 9 August 2011 the UK’s Financial Services Authority (FSA) published a consultation on Recovery and Resolution Plans (RRPs). After considering responses received, the FSA have chosen to delay publication of concomitant final rules in order to take into account work being undertaken at international and EU level.
The UK Government White Paper on banking reform of June 2012 also identified gaps in the resolution regime for systemically important non-bank financial entities. The White Paper undertook that the UK Government would address such gaps on a more accelerated timetable than is currently envisaged for the ongoing international work. In July 2012, HM Treasury published a Consultation on broadening the financial sector resolution regime to other institutions including investment firms, FMIs and insurance companies. AIMA submitted a response.
Key legislative texts
HMT Financial sector resolution: broadening the regime (August 2012)
FSA CP11/16: Recovery and Resolution Plans (August 2011)
Response to FSA Consultation on Recovery and Resolution Plans (November 2011)