The FSA has published an update to its Recovery and Resolution Planning (RRP) guidance dated 20 February 2013.
It expects to publish formal RRP rules “soon” after the FSA hands responsibility over to the Prudential Regulation Authority on 1 April 2013. An updated RRP information pack for firms can be expected soon thereafter with subsequent updates aimed at aligning UK domestic requirements with Financial Stability Board guidance and the EU Recovery and Resolution Directive also expected.
In light of the experience of RRP submissions to date and international policy development, the FSA update also details the following two policy changes:
- firms will be required to update recovery plans annually as part of their normal risk management procedures and submit it to supervisors for review when requested; and
- firms will not have to update their resolution information pack (RRP Modules 3-6) on an annual basis as a matter of process. Instead, they should respond to requests for resolution planning information from their supervisors.