The Financial Services Authority (FSA) has published a feedback statement setting out the approach being taken by the FSA to ensure firms develop appropriate recovery plans and resolution packs. Recovery plans aim to reduce the likelihood of failure by requiring firms to identify options to achieve recovery, to be implemented when a crisis occurs. The plans must be developed and maintained by the firm, in coordination with the FSA, but they should all have the following features: (i) sufficient number of material and credible options to cope with a range of scenarios including both firm-specific and market wide stresses; (ii) options which address capital shortfalls, liquidity pressures and profitability issues and should aim to return the firm to a stable and sustainable position; and (iii) options that the firm would consider in more severe circumstances such as: disposals of the whole business, parts of the businesses or group entities; raising equity capital which has not been planned for in the firm’s business plan; complete elimination of dividends and variable remuneration; and debt exchanges and other liability management actions. Resolution packs will assist the authorities to wind-down a firm if it fails for whatever reason.  The resolution data and analysis to be provided by firms is intended to identify significant barriers to resolution, to facilitate the effective use of the powers under the SRR and so reduce the risk that taxpayers' funds will be required to support the resolution of the firm. The information provided to the authorities will help to prepare a resolution plan.