On November 2, the FSB published a consultation paper on proposed guidance for the recovery and resolution planning for systemically important financial institutions (SIFIs), entitled ‘Recovery and Resolution Planning: Making the Key Attributes Requirements Operational’. The proposed guidance is designed to assist national authorities with implementing the recovery and resolution planning requirements (so-called “living-wills”) set out by the FSB in their paper entitled ‘FSB Key Attributes of Effective Resolution Regimes for Financial Institutions’. Under the Key Attributes, firms are responsible for developing recovery actions to restore financial strength and viability.

The consultation paper builds on the FSB’s experience in this area to date and covers:

• recovery triggers and stress scenarios to be used by firms in their recovery planning;
• the development of resolution strategies and associated operational resolution plans tailored to different group structures; and
• the identification of the critical functions and supporting services that would need to be maintained in a crisis for reasons of systemic stability.

 The FSB invites responses by December 7.