About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

UK Government Proposes Insolvency Rule Changes Including More Counterparty Data

Subscribe to our newsletter

The UK government has proposed changes to insolvency rules to give greater protection to investors and markets in the event of the failure of an investment bank. The rule changes are aimed at rectifying issues that have been identified since the collapse of financial institutions such as Lehman Brothers last year.

The focus is on reducing counterparty risk by providing more information about outstanding trades and mandating that firms implement contingency plans for continuity of service obligations in the event of insolvency. Firms will be required to provide information including the status of outstanding trades and the details of contingency plans to the UK Financial Services Authority (FSA) on a regular basis.

The government decided against adopting a US style Chapter 11 regime because it was deemed unsuitable for the UK market in light of the current legal regime. The proposals claim that the UK regime is more attractive than that of other jurisdictions because it does not distinguish between domestic and international creditors.

Although the introduction of these “pre-failure” steps could be criticised for being too little, too late, the government is keen to be seen to be tackling the systemic consequences that can occur from the collapse of a large financial institution.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Taking a holistic approach to buy-side data management

Date: 10 November 2022 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes As data volumes and complexity continue to increase, buy-side data management is at an inflection point. Manual processes and data siloes are no longer fit for purpose, and firms need to take a more holistic approach to data management...

BLOG

Encompass Plans Global Growth Acceleration Following £25 Million Funding Round

Encompass, a provider of automated Know Your Customer (KYC) solutions, has completed a capital raise of £25 million. The funds will be used to accelerate global growth, particularly in the US where the company opened its first office in New York in October 2021, and in Europe where an office was recently opened in Amsterdam....

EVENT

FRTB Briefing Virtual (Redirected)

The FRTB Briefing Virtual will examine key focus areas and priorities for banks in 2020 and offer guidance, advice and expertise for tackling the challenges and pain points around implementing the FRTB regulation.

GUIDE

GDPR Handbook

The May 25, 2018 compliance deadline of General Data Protection Regulation (GDPR) is approaching fast, requiring financial institutions to understand what personal data they hold, why they process it, and whether it is shared with other organisations. In line with individuals’ rights under the regulation, they must also provide access to individuals’ personal data and...