SRB publishes operational guidance for operational continuity in resolution and FMI contingency plans
The Single Resolution Board (SRB) today publishes operational guidance on operational continuity in resolution (OCIR) and on FMI contingency plans. This follows the publication, following consultation, of the SRB Expectations for Banks document, which sets out the capabilities the SRB expects banks to demonstrate to show that they are resolvable including the dimensions of OCIR and access to FMIs.
The guidance on OCIR provides further clarifications to banks on how to implement SRB expectations related to service identification and mapping, assessment of operational continuity risk, mitigating measures such as having adequately documented, resolution-resilient contracts, appropriate management information systems and governance arrangements. Further guidance may be provided on other OCIR topics in line with their phase-in.
The guidance on FMI contingency plans sets out the SRB’s expectations with regard to the minimum content of FMI contingency plans prepared by banks. Each bank is expected to develop an FMI contingency plan in line with the recommendations published by the Financial Stability Board (FSB) in the Guidance on Continuity of Access to FMIs for a Firm in Resolution of July 2017. The operational guidance provides further details on a possible outline of the contingency plan, as well as an indicative phase-in across FMI service providers.
The SRB acknowledges the challenges that banks face in the current and unprecedented situation related to the Covid-19 pandemic, and that their focus is on business continuity and supporting the economy. The SRB, in close cooperation with other authorities and the banks under its remit, is carefully monitoring the situation. It is prepared to give banks the flexibility they may need to implement the ‘Expectations for Banks’ on an individual basis.