On August 1, HM Treasury published a consultation paper Financial Sector Resolution: Broadening the Regime setting out proposals and questions for consultation on enhancing the mechanisms available for dealing with the failure of systemically important non-bank financial sector entities.
The consultation covers four broad groups where the government considers institutional failure to potentially pose systemically important issues: investment firms and financial holding companies; central counterparties (CCPs); other financial market infrastructures such as payment systems; and insurers.
The consultation paper contains draft legislative clauses for certain key aspects of the envisaged resolution. The consultation closes on September 24.
For more information, click here.
