FSB consults on ‘too big to fail’ insurer guidelines

The Financial Stability Board (FSB) has launched a public consultation on whether to apply guidelines for ‘too big to fail’ (TBTF) companies to insurers.

The deadline for responses is 15 October.

The FSB has already added nine insurers to its list of systemically important financial institutions. However, it is now considering applying the measures in its document, Key Attributes of Effective Resolution Regimes for Financial Institutions, to non-banks, including insurers.

Key Attributes sets out the core elements needed to wind down systemically important financial institutions without severe systemic disruption or loss to taxpayers.

FSB chairman Mark Carney said: “Today’s publication of draft guidance on the resolution of non-bank financial institutions represents further significant progress in international efforts to develop the powers and tools that authorities need to manage the failure of any type of systemic institution without taxpayers bearing the costs.

“Resolution of firms from other financial sectors has lagged behind the progress made in relation to banks.”