The GFSC is the appointed Resolution Authority (RA) for Gibraltar. The powers of the GFSC as RA are delegated to the Financial Services Resolution and Compensation Committee (the FSRCC), which was established in 2016.
The FSRCC is responsible for resolution planning for Credit Institutions and Investment Firms as well as decision-making relating to the reorganisation of institutions experiencing financial difficulties.
The FSRCC is operationally independent from the supervisory function of the GFSC, with the Resolution and Compensation Unit carrying out its day to day functions and reporting directly to the Committee.
The key resolution objectives of the RA are to:
- ensure the continuity of critical functions of BRRD firms where appropriate
- avoid a significant adverse effect on the financial system, in particular by preventing contagion, including to market infrastructures, and by maintaining market discipline;
- protect public funds by minimising reliance on extraordinary public financial support;
- protect depositors covered by Directive 2014/49/EU and investors covered by Directive 97/9/EC; and
- protect client funds and client assets.
In addition, the FSRCC will continue to add important elements to its role of ensuring the stability of the Gibraltar financial market, the protection of clients and the implementation of and compliance with recognised international standards.
Separately, the FSRCC is also the authority responsible for the Deposit Guarantee Scheme in Gibraltar. It manages the tasks of the Deposit Guarantee Scheme, collects deposit guarantee contributions and decides on the Deposit Guarantee Fund’s payment liability. For further detail, please see www.gdgb.gi
The FSRCC manages both the Resolution and Deposit Guarantee Ex-Ante Funds which are financed by contributions from credit institutions and investment firms where appropriate. These funds are held on trust and can only be used for the specified purposes intended.
RCU Bank Resolution Seminar Charting the Course for Gibraltar Banks
RCU Industry Dialogue Seminar
Gibraltar’s Resolution and Compensation Unit (the RCU) organised its first Industry Dialogue Seminar entitled ‘Resolution Planning Framework: Charting the Course for Gibraltar Firms’, on 13th September, at the Finance Centre. It brought together over 35 stakeholders, including representatives from the banking industry, relevant investment firms, as well as law and accounting firms.
The meeting featured a welcome address by Mr. Keith Bailey, Member of the Financial Services Resolution and Compensation Committee (the FSRCC), followed by presentations on resolution planning, delivered by Séamus Hayes (Head of the Resolution and Compensation Unit).
In his welcome address, Mr. Bailey highlighted that this is only the first of many opportunities the industry will have to engage with the RCU and outlined how such a framework is an important component to financial stability within the jurisdiction.
Mr. Hayes presented on the state of play of resolution planning, highlighting the progress made by the FSRCC in embedding a robust Resolution Framework. In this respect, the RCU acknowledged the role of industry representatives, who have been actively involved to date, and looked forward to continued engagement through upcoming workshops on the technical implementation over the coming months.
The RCU would like to thank all participants for their attendance and in particular their active participation in the question and answer session.