FSB Resolution Planning Principles: FSB Finalizes Guiding Principles on the Internal Total Loss-Absorbing Capacity of G-SIBs and Guidance on Achieving Continuity of Access to Financial Market Infrastructures

Sullivan & Cromwell LLP - July 12, 2017
Download

Last week, the Financial Stability Board (“FSB”) released final guidance on two important aspects of international regulators’ approach to more robust resolution planning for Global Systemically Important Banks (“G-SIBs”): (i) the Guiding Principles on the Internal Total Loss-Absorbing Capacity (“Internal TLAC”) of G-SIBs (“Final Internal TLAC Principles”), which  addresses high-level guiding principles to assist Crisis Management Groups in the implementation of the sections in the FSB’s November 9, 2015 Term Sheet that address Internal TLAC and (ii) the Guidance on the Continuity of Access to Financial Market Infrastructures (“FMIs”) for a Firm in Resolution (“Final FMI Guidance”), which provides guidance to FMI service providers, FMI service users and the regulators of the two with respect to the continuity of access to the FMI’s services during the resolution of the FMI service user.  Substantively, both the Final Internal TLAC Principles and the Final FMI Guidance are largely unchanged from the FSB’s consultative documents regarding Internal TLAC and FMI continuity that were released in December, 2016, although some adjustments were made in response to comments made by financial industry participants and others.