On October 16, 2014, the FSB issued a consultation paper on recovery and resolution planning for Systemically Important Insurers ("SIIs") and guidance on the identification of critical functions and critical shared services SIIs. The guidance deals with functions and services provided by insurance or reinsurance companies that could be systemically significant or critical were the SIIs to fail. It also aims to support resolution planning for global and other SIIs, as well as assist national authorities in implementing the recovery and resolution planning requirements set out in the FSB's Key Attributes of Effective Resolution Regimes for Financial Institutions and the International Association of Insurance Supervisors' policy measures for global SIIs.
The consultation proposes a framework for critical functions as well as one for critical shared services, and provides an indicative and non-exhaustive list of functions that could be identified as critical. The paper states that national authorities must carry out their own assessments in each case, while taking into consideration the characteristics of its own jurisdiction's financial system, the economic and competitive landscape, and the range of functions provided by other insurers. The consultation closes on December 15, 2014.
The consultation is available at: http://www.financialstabilityboard.org/publications/c_141016.pdf.
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