Abstract
At the St. Petersburg Summit in 2013 the G20 made a commitment to undertake the necessary actions to remove obstacles to cross-border resolution and asked the FSB to “develop policy proposals on how legal certainty in cross-border resolution can be further enhanced”. The consultative document proposes a set of policy measures and guidance consisting of: (i) elements that jurisdictions should consider including in their statutory cross-border recognition frameworks to facilitate effective cross-border resolution as required by the FSB Key Attributes of Effective Resolution Regimes for financial institutions and (ii) contractual approaches to cross-border recognition that focus on two particular cases where achieving cross-border recognition is a critical prerequisite for orderly resolution: temporary restrictions or stays on early termination and cross-default rights in financial contracts; and the ‘bail-in’ of debt instruments that are governed by the laws of a jurisdiction other than that of the issuing entity.