4th CCLS Roundtable on Financial Regulation: 'The implementation of the FSB Key Attributes in the EU'

17 June 2016

Time: 12:15 - 5:45pm
Venue: Reed Smith, Broadgate Tower, 20 Primrose Street, London EC2A 2RS

This event is generously sponsored by Reed Smith. 

The FSB Key Attributes of Effective Resolution Regimes for Financial Institutions ('the FSB Key Attributes') represent what is currently perceived as best practice in the resolution of financial institutions. Since their endorsement by the G20 Leaders at the Cannes Summit in November 2011, the FSB Key Attributes have precipitated a wave of policy and legal reform around the world. In Europe, for example, the entering into force of the Bank Recovery and Resolution Directive (BRRD) and the eventual transposition of the Directive into the domestic law of Member States marked a new era for the resolution of financial institutions both within and outside the Banking Union. The legal framework of the BRRD is meant to be the antidote for a wide range of pathological features of the previous largely chaotic and in many respects rudimentary regime of bank resolution in Europe. That said, the Directive itself has become the subject that (almost) everyone loves to hate even before its entering into force. The Roundtable takes issue with the grounds of this criticism and what those grounds are telling us about the implementation of the FSB Key Attributes in the EU.

Objectives

• To explore the effectiveness of  the implementation of the FSB Key Attributes in the EU and the impact of the BRRD in this respect.
• To propose a research agenda by identifying themes that require further investigation.

Themes under examination could include but are not limited to the following

• A critical evaluation of the FSB Key Attributes: Are the FSB recommendations sound? Is there anything missing?
• The correlation between EU bank resolution and domestic insolvency law: E.g., how does this correlation impact on the implementation of the FSB KAs?
• Institutional aspects of bank resolution in the EU: E.g., how does the existing institutional architecture impact on the implementation of the FSB KAs?
• Cross-border aspects of bank resolution: E.g., is the EU legal framework consistent with the relevant FSB KAs with respect to burden-sharing, coordination, enforcement, settlement of disputes etc.?
• The correlation of prudential supervision and bank resolution: E.g., where does prudential supervision stop and where does bank (recovery and) resolution start? If we cannot draw a line, how does that affect the implementation of the FSB KAs and the choice of institutional design?
• The intersection between the SRM and the SSM and the institutional dynamic between the ECB and EU level and Member State level resolution agencies.
• How effective is the BRRD going to be in shifting the cost of bank resolution from the public sector to the private sector? Is this shifting of cost desirable at all times?
• Bank nationalism as a source of incentive misalignment: Is it still a problem under the BRRD and the SRMR? More generally, do we have the tools to deal with incentive misalignment in the context of EU bank resolution?
• The case for (and against) extending the EU legal framework of bank resolution to other systemically significant financial institutions (e.g. insurers, central counter-parties).
• The international dimension of EU bank resolution and comparative analysis: EU bank resolution and third countries –notably comparison with the US.
• What is next for crisis prevention and management in the EU? E.g.,  how (if at all) is the creation of a Capital Markets Union going to affect bank resolution?

Programme

• 12.15: Registration. Light lunch and refreshments
• 12.50: Welcome (Dr Andromachi Georgosouli, CCLS, QMUL) and introductory remarks (Professor Rosa Lastra, CCLS, QMUL)
• 13.00-14.15: Session I
  • Chair: Dr Eva Huepkes (FSB)
  • Paper presenter (A): Dr Tara Rice (US, Federal Reserve System and US Treasury)
  • Paper presenter (B):  Dr Nicholas S. Coleman (US, Federal Reserve System)
  • Paper presenter (C): Dr Andromachi Georgosouli (CCLS, QMUL)
    • Theme of the joint paper presentation: 'The Implementation of the FSB Key Attributes in the EU'
• 14.15-14.30: Coffee break
• 14.30-15.45: Session II
  • Chair: Jacqui Hatfield (Partner, Reed Smith)
  • Paper presenter (A): Professor Riz Mokal (UCL, Senior Counsel of the World Bank): ‘Bank Resolution and Insolvency’
  • Paper presenter (B): Dr Pierre Schammo (University of Durham): ‘Relationship between Capital Markets Union and Bank Resolution’
• 15.45-16.15: Coffee break
• 16.15-17.30: Session III
  • Chair: Andrew Lodge (Bank of England)
  • Paper presenter (A): Professor Dr Matthias Lehmann (University of Bonn): ‘Cross-Border Aspects of Bank Resolution’
  • Paper presenter (B): Professor Christos Hadjiemmanuil (University of Piraeus; LSE): ‘Beyond Capital Adequacy: Bail-ins, TLAC and the New Structure of Financial Requirements of Banking Institutions’
• 17.30-17.45: Closing remarks (Stefano Cappiello, SRB)

Directions

For directions to this venue, please refer to the map.

CPD Points

The programme is accredited for 4 CPD Points with the Bar Standards Board (BSB).

Contact

For more information, please contact the CCLS Events team on ccls-events@qmul.ac.uk.

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