Regulatory Alerts2022-05-17
Consultation on Crisis Management Powers for Systemically Important Financial Market Infrastructures
The Reserve Bank of New Zealand proposes a two-tier crisis management framework for systemically important financial market infrastructures to ensure the continuity of essential services. The first tier mandates operators to maintain business continuity and recovery plans, while the second tier grants joint regulators statutory powers to issue directions, appoint directors, or recommend statutory management when plans fail. These measures aim to mitigate systemic risk and minimize disruption to the broader financial system in the event of an FMI failure.
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