2023 FIA Tech Regulatory Protocol - FAQs

THESE FAQS ARE FOR GENERAL GUIDANCE ONLY AND DO NOT CONSTITUTE LEGAL ADVICE OR DEFINITIVE ADVICE OF ANY NATURE.

This article is currently being built out, and will be updated with additional information shortly. 

Background

In light of Bank Recovery and Resolution Directive (BRRD) regulations, many firms have indicated that a significant number of existing Give-Up Agreements may need to be updated to reflect additional contractual language pertaining to bail-in clauses.  Given the operational and legal efforts required to initiate and execute a high-volume of individual agreements in a short period of time, firms have requested additional tools to assist in streamlining re-papering efforts.  FIA Tech has worked with the FIA Law & Compliance Division, as well as outside counsel, to develop legal and technical solutions enabling these bulk-agreement updates.  To this end, the 2023 FIA Tech Regulatory Protocol (the Protocol) & BRRD Supplement have been created, which firms may adopt to support these bulk actions.

Protocol Overview

By adopting the Protocol & BRRD Supplement once at the outset, parties to existing GUAs will be able to send a notice (a Transition Notice) via FIA Tech’s Docs service to their GUA counterparties designating the FIA standard bail-in language (BRRD Clause) they wish to apply to the GUA. Adopting Parties retain their right to accept or reject any received Transition Notice.