The U.K. government set out proposals to limit the fallout from the failure of financial institutions other than banks.
The Treasury began a consultation today on ways to protect the financial system in the event of a failure of the networks that connect market participants -- investment firms, central counter-parties, payments systems and insurance companies. The consultation does not assume that a resolution regime will be necessary for each sector, the Treasury said.
“This consultation underlines the government’s commitment to maintaining the U.K.’s position as a preeminent global financial center, while also ensuring that the financial-services sector is able to provide essential services to the wider economy without posing a risk to financial stability,” Treasury minister Mark Hoban said in an e-mailed statement released by his office in London.
The move is a response to the recommendations of the Independent Commission on Banking, a blueprint for banking reform that has largely been accepted by the government. The consultation runs until Sept. 24, the Treasury said.