On 29th of March, Albany Beck held the Recovery and Resolutions Planning breakfast.
Ever since the 2008 banking crisis, financial institutions have understood that they needed several tools that can be effective in times of financial stress and The Recovery and Resolution Planing was born. After the Turner Review in 2009, the British authorities decided to follow the new regulatory regime, so-called “living wills” (the other name that the Recovery and Resolution Planing is known by). In 2012, these plans became a requirement of large investment firms and all licensed deposit-takers.
Our guest speakers, masters on the topic, were Laura Ann Michelic from Deutsche Bank and Kayley Harden from JP Morgan. Thanks to them we discovered key steps to succeed on the implementation of this challenging new requirements. The plans comprised of two main steps that should be taken. In the first place a recovery plan should be established and has to define the set of actions a firm can take to recover from negative financial shocks or stress. The second part of the plan is the actual resolution planning. It provides the authorities with sufficient data to allow them to determine a detailed map to resolve a failed financial organisation. This way, the institution do not have to resort their problem to the government (effectively taxpayer) support.
We thank our clients for coming to the breakfast to discuss the topic, and we hope to see you again soon!