The draft guidelines set out the process and criteria for the assessment of key SREP elements including:
- business model;
- governance arrangements and firm-level controls;
- assessment of capital risks and related capital adequacy;
- liquidity risk assessment.
In addition, a scoring system is introduced to facilitate comparability across firms.
The consultation will end on 28 February 2022.
The six consultation papers contain proposals for Draft Regulatory Technical Standards on:
- resolution colleges;
- the valuation of CCPs’ assets and liabilities in resolution;
- the safeguards for clients and indirect clients; and on
- the content of resolution plans.
They also contain proposals for Draft Guidelines on:
- the valuation in termination of contracts; and on
- the application of the circumstances under which a CCP is deemed to be failing or likely to fail.
Harmonised CCP resolution measures will allow CCPs and the relevant regulators to be prepared for the measures and actions taken in a resolution process.
The consultation will end on 24 January 2022.