On October 17, 2014, the FSB published a consultation paper on guidance on cooperation and information sharing with host authorities of jurisdictions that are not represented on crisis management groups ("CMGs"), where a globally systemically important financial institution ("G-SIFI") has a systemic presence. The FSB's Key Attributes of Effective Resolution Regimes for Financial Institutions calls for home and key-host authorities of FSB-designated G-SIFIs to establish CMGs and to develop effective cross-border resolution plans. CMG membership however is limited to key authorities from jurisdictions that are home or host to entities that are material to the effective resolution of the group. This means that CMG representation is sometimes absent i.e., in cases where the operations of a firm are locally systemic to the host jurisdiction but are not material to the resolution of the group. The consultation covers (i) the process for identifying non CMG host jurisdictions; (ii) criteria for assessing the systemic nature of a G-SIFI's presence in a non-CMG host jurisdiction; (iii) co-operation and information sharing arrangements with a non-CMG host jurisdiction; and (iv) classes of information to be shared between home authorities and non-CMG host jurisdictions.
The consultation closes on December 1, 2014.
The consultation is available at: http://www.financialstabilityboard.org/publications/c_141017.pdf.
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