On September 29, 2014, the Financial Stability Board’s (FSB’s) Consultative Document, “Cross-Border Recognition of Resolution Action” was released. This consultative document proposes a package of policy measures and guidance consisting of elements that jurisdictions should consider in order to prevent the costs and consequences of disorderly resolution procedures for large, complex and systemically important financial institutions and to promote effective cross-border resolution. As part of the consultative process the FSB called for comments on this document. This paper is a response to this call, and in particular focuses on question 3 and question 4 of the consultative document. The comments regarding question 3 examine the appropriate design and implementation of resolution procedures for global systemically important financial institutions, and question 4 examines resolution regimes based on contractual approaches. 

Part of Series

CIGI Papers present in-depth analysis and discussion on governance-related subjects. They include policy papers that present CIGI experts' positions or contributions to policy debates, and background papers that contain research findings, insights and data that contribute to the development of policy positions.
  • Steven L. Schwarcz is a CIGI senior fellow and the Stanley A. Star Professor of Law & Business at Duke University. At CIGI, Steven leads research on systemic risk and financial regulation, corporate governance of systemically important firms, cross-border resolution measures and sovereign debt restructuring.

  • Mark Jewett is a CIGI senior fellow. He is counsel to Bennett Jones LLP, where his practice focuses on domestic and international aspects of financial law. At CIGI, he will research and write on sovereign debt and cross-border insolvency.

  • E. Bruce Leonard is a veteran in the field of international insolvency and is founding member, chair and director of the International Insolvency Institute. He has served for many years as a delegate to the United Nations Commission on International Trade Law in relation to its work on its Model Law on Cross-Border Insolvency and Legislative Guide on Insolvency Law.

  • Catherine Walsh teaches and writes principally in the areas of secured transactions and private international law. She has been actively involved in a number of national and international reform initiatives, including two multilateral legal instruments developed by the United Nations Commission on International Trade Law.