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Insolvency: Payment and Settlement Systems

My right honourable friend the Financial Secretary to the Treasury (Greg Clark) has today made the following Written Ministerial Statement.

HM Treasury has today published a consultation document setting out its plans to change the way that systemically important payment and settlement systems are dealt with in the event of insolvency.

Under the proposed special administration regime, the administrator would have the overarching objective to maintain the continuity of the insolvent firm’s critical services, thereby ensuring that the failure of such a company would not threaten the stability of the wider financial sector.

The Government are determined to ensure that no firm, of whatever type, threatens financial stability in the event of failure. Today’s consultation is just the latest step in the Government’s efforts to learn the lessons of the past and to create a safer financial system for the future.

Copies of the consultation document have been deposited in the House Libraries.