We need to consider how to approach other systemic financial institutions like central counterparty clearing houses, or CCPs. We have required more clearing to go through central counter parties. That's good for transparency and will reduce risk. But now, if we are going to rely more on CCPs, we also need to put in place a system so that we can resolve them if anything goes wrong.
As CCPs operate across borders, it's important that we engage internationally on this issue. So, I have decided that the sensible way to proceed is to align our work on this with the work being taken forward as part of the G20 agenda. We'll table a proposal for an effective recovery and resolution regime for clearing houses towards the end of the year.
In the insurance sector, we're working through the International Association of Insurance Supervisors on how to best manage risk. We of course expect all insurers to be ready with resolution and recovery plans. But at present, we're not convinced that new EU legislation is needed. We'll continue to closely monitor the situation very carefully. And we will take the same approach to the asset management sector.