The European Commission has published an extract from a speech given by Jonathan Hill (European Commissioner for Financial Stability, Financial Services and Capital Markets Union (CMU)), on an approach to resolution for non-bank financial institutions.
In his speech, Commissioner Hill explains that more clearing has been required to go through central counterparties (CCPs) and consequently that will reduce risk and enhance transparency. However, relying on CCPs will require a system to be put in place, and as CCPs operate across borders, it’s important to engage internationally on this issue and to align the EU work with the work being taken forward as part of the G20 agenda. As a consequence, the Commission will table a proposal for an effective recovery and resolution regime for clearing houses towards the end of the year.
On resolution in the insurance sector, Commissioner Hill explains that the Commission is working through the International Association of Insurance Supervisors on how to best manage risk. Even though, at present the Commission is not convinced that new EU legislation is needed, it still plans to closely monitor the situation very carefully. Such approach will be taken in regards to the asset management sector.
View European Commission plans an approach to resolution of non-bank financial institutions, 9 February 2016