News release: “The Financial Services Authority (FSA) has published a Consultation Paper (CP) and Discussion Paper (DP) on its proposals for Recovery and Resolution Plans (RRP), required of financial institutions. The publication also covers policy proposals aimed at reducing the impact of firms’ failure in relation to their investment business client money and custody assets holdings. The CP covers the requirement for banks and large investment firms in the UK to prepare and maintain Recovery and Resolution Plans and the DP explores matters relevant to the resolution of financial services firms. The 2008 banking crisis highlighted that firms failed to have effective recovery plans in place. Had firms had such plans in place prior to the advent of the crisis, they might well have been able to cope better with the stresses that developed and failures might have been avoided. Since the crisis the G20 has called* for the rapid development of internationally consistent, firm-specific recovery and resolution plans and tools by the end of 2010 and the Financial Stability Board (FSB) has set out a timetable for RRPs of systemically important firms to be completed by the end of 2012. Under the Financial Services Act 2010 all UK deposit-takers are required to have RRPs in place. [These] documents put in place the process for implementing that requirement.”