The Financial Stability Board’s (FSB) Key Attributes of Effective Resolution Regimes for Financial Institutions (the Key Attributes) require home and key host authorities of FSB-designated global systemically important financial institutions (G-SIFIs) to maintain crisis management groups (CMGs) to prepare for and manage a cross border financial crisis affecting the firm.
The Key Attributes also require cooperation and information sharing between CMGs and jurisdictions where the G-SIFI has a systemic presence locally but that do not participate in the CMG.
In its report to the G20 on Progress and Next Steps Towards Ending “Too-Big-To-Fail” the FSB agreed to develop recommendations for cooperation and sharing information with host authorities in jurisdictions where a G-SIFI has a systemic presence but that are not participating in the CMG of that G-SIFI.
The FSB has now published draft guidance on cooperation and information sharing with host authorities of jurisdictions not represented on CMGs where a G-SIFI has a systemic presence. The draft guidance covers four main areas:
- process for identifying non-CMG host jurisdictions;
- criteria for assessing the systemic nature of a G-SIFI’s presence in a non-CMG host jurisdiction;
- cooperation and information sharing arrangements with a non-CMG host jurisdiction; and
- classes of information to be shared between home authorities and non-CMG host jurisdictions.
The deadline for comments on the consultation is 1 December 2014.