Divergence fears over insurer resolution proposals

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The scope of the recently proposed global standards for the resolution of failing insurers is unclear and could lead to divergent national resolution regimes, experts are warning.

On August 12, the Financial Stability Board (FSB) published a consultation paper on extending the so-called ‘key attributes' of the resolution regime for too-big-to-fail banks to the insurance sector.

The Basel-based co-ordinating body proposes that supervisory authorities be given extended powers to restructure liabil