The Financial Services Authority is bracing itself for stiff resistance from banks, in particular, non-UK banks with branches or subsidiaries in the UK, over its proposals for living wills. The regulator's chief executive Hector Sants said: "It is obviously very early days in the process and there will no doubt be further collective consideration of the content of such plans. Nevertheless, my forecast ... is that initially, there will be a mismatch between firms' views as to the detail and substance required, and that of the supervisors. My expectation is thus that the sign-off process will involve a significant degree of challenge from both parties."
Tim Plews, a partner at Clifford Chance, told Complinet: "Hector Sants seems to shaping up for a fight over the quality and utility of living wills." Rob Moulton, a partner at Nabarro LLP, agreed, telling Complinet: "Hector Sants believes there is going to be a row between banks and regulators about living wills."
Speaking to the FSA's
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