In this regard, the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions, which were also endorsed by the G20 in Cannes, represent a major leap forward.1 The Key Attributes constitute a new international standard and serve as a point of reference for the overhaul of national resolution regimes, setting out elements needed for enabling the orderly resolution of financial institutions, irrespective of their size or importance.
The Key Attributes require jurisdictions to have a designated resolution authority in place that possesses all necessary powers to intervene in and resolve financial institutions that are no longer viable. This includes specific legal powers as well as the operational capacity to implement orderly resolutions. In addition, for internationally active firms, institution-specific cross-border cooperation agreements should and will be established.