Qualified advisers answering your
Financial Questions
call 0800 092 1245

Lord Turner tells banks to write their living wills

The Financial Services Authority (FSA) will today reaffirm its determination to ensure that each and every financial institution in the UK has a "living will" available in the event of its collapse. As we have seen with the likes of Royal Bank of Scotland and HBOS, when these companies hit a troubled patch it can take the regulator some time to confirm the situation, liabilities and potential liabilities for the future. As a result we will see the introduction of "living wills" over the next few months, but how will it help?

In the event of some kind of financial collapse or "financial turbulence" it is paramount that the regulator is allowed to act with greater speed and has information which is both accurate and helpful. Spending weeks or months ploughing through a company's report and accounts, balance sheet and liabilities will waste vital time which could cause significant issues with other financial institutions. The ability to literally go in there, address the situation and act will save much stress and potentially more problems for the future.

It will be interesting to see how these "living wills" look because they could in some circumstances highlight other issues which maybe investors and regulators were potentially unaware of.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details