Operational continuity in resolution (“OCIR”) refers to continuity in resolution of services that are essential to the continued performance of critical financial functions ("CFFs") as well as to support post-stabilization restructuring in a timely manner. The ability to ensure OCIR is consistent with the objectives and standards of the Key Attributes of Effective Resolution Regimes for Financial Institutions published by the Financial Stability Board. OCIR is therefore a key aspect of resolution planning for individual authorized institutions (“AIs”) and failure to sufficiently address and mitigate OCIR risk may constitute a significant impediment to the orderly resolution of an AI.
OCIR-1 “Resolution Planning – Operational Continuity in Resolution” is a chapter of the code of practice issued by the Monetary Authority (“MA”) under the Financial Institutions (Resolution) Ordinance. It explains the MA’s policy in relation to OCIR and sets out the MA’s expectations regarding the ex-ante arrangements AIs should put in place to secure the continuity in resolution of services that are essential to the continued performance of CFFs as well as to support post-stabilization restructuring in a timely manner. It provides guidance to AIs on the MA’s approach to resolution planning and resolvability assessment (including the removal of impediments to orderly resolution) as regards OCIR.