UK announces details of ‘living will’ requirements

Author: | Published: 16 Aug 2011

Financial institutions will have to consider radical changes to their business structure and regularly report derivatives positions and interbank exposures as part of the UK's proposed recovery and resolution plans.

In a consultation paper released on August 9, banks and large investment firms in the UK with assets exceeding £15 billion are required to coordinate resolution and recovery plans, or living wills, with the UK Financial Services Authority.The consultation paper sets out specific features which the recovery plans require. Firms need to consider as range of options for sustaining and restoring capital and liquidity resources and profitability during a...