Banks and FINMA both involved in recovery and resolution planning

Systemically important banks are responsible for drafting their own recovery plan, which is reviewed by FINMA. FINMA draws up the resolution plan. The bank must provide it with the information it needs.
Each systemically important bank must set up an overall project to handle the recovery and resolution plan (RRP). Responsibility for the project must lie at executive board level and be embedded in a viable corporate governance framework, as well as being allocated enough adequately trained staff. The executive board itself must sign off strategies and planning and keep track of topics relevant to the RRP.

Regular updating

A senior executive must also be placed in charge of the drafting and regular updating of the RRP for the whole bank on behalf of its ultimate management. SIBs must provide FINMA with information about the RRP project and supply meaningful and understandable updates on its progress at regular intervals, when requested by FINMA and – in the case of material deviations from the project plan, ad hoc and on its own initiative.

FINMA approves recovery plan and drafts resolution plan

Systemically important banks are responsible for drafting and regularly updating their own recovery plans, which FINMA approves, provided they meet the legal requirements.

The resolution plan, on the other hand, is drawn up by FINMA on the basis of information submitted by the bank for it to verify and analyse. FINMA can disclose the resolution plan to the institution, but it is not obliged to do so. It is only bound by the resolution plan to the extent prescribed by law and may deviate from the planned strategies and measures in practice.