FED published supporting statement for the reporting requirements associated with Regulation QQ (FR QQ; OMB No. 7100-0346) on resolution plans. On August 21, 2018, FED had published the final Federal Register Notice on the adoption of the proposal to extend, with revision, the mandatory reporting requirements associated with Regulation QQ. The revisions are applicable as of July 31, 2018.
Regulation QQ applies to bank holding companies with assets of USD 50 billion or more and nonbank financial firms that have been designated for FED supervision. These entities are required to annually report to FED and FDIC their plans for rapid and orderly resolution under the U.S. Bankruptcy Code, in the event of material financial distress or failure. Resolution plans filed under section 165(d) and Regulation QQ assist covered companies and regulators in conducting advance resolution planning for a covered company. Regulation QQ requires a strategic analysis by the covered company of how it can be resolved under the Bankruptcy Code within a reasonable period of time and in a manner that substantially mitigates the risk that the failure of the covered company would have serious adverse effects on financial stability in the United States. Regulation QQ requires each resolution plan to contain certain information, including information on the
- Manner and extent to which any insured depository institution affiliated with the covered company is adequately protected from risks arising from the activities of nonbank subsidiaries of the company
- Detailed descriptions of the ownership structure, assets, liabilities, and contractual obligations of the company
- Identification of the cross-guarantees tied to different securities and identification of major counterparties
- A process for determining to whom the collateral of the company is pledged
Keywords: Americas, US, Banking, Reporting, Regulation QQ, Resolution Planning, Supporting Statement, EGRRCP Act, FED
Previous ArticleMAS Issues Guidelines for Liquidity Risk Management by Fund Managers
Next ArticleEIOPA Publishes Q&A on Regulations in October 2018
HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.
PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).
US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).
US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.
FSB finalized the toolkit of effective practices to assist financial institutions in their cyber incident response and recovery activities.
ECB published eleventh issue of the Macroprudential Bulletin, which provides insight into the ongoing work of ECB in the field of macro-prudential policy.
HM Treasury issued a call for evidence seeking views to reform the prudential regulatory regime—also known as Solvency II—of the insurance sector in UK.
ESRB responded to the EC consultation on review of Solvency II regime.
HM Treasury launched a consultation on Phase II of the Future Regulatory Framework Review, with the comment period ending on January 19, 2021.
EC adopted the work program for 2021.