FSB reports to G-20 on reform progress: FSB has delivered, in the context of the G-20 Brisbane Summit, the following reports:

  • a progress report on measures to address risks posed by shadow banking. It includes a roadmap of planned actions for 2015, which includes the launch of a peer review into implementation of the policy framework for "other" shadow banking entities, a report on harmonisation of the treatment of collateral re-use, and a consultation on the scope of banks' prudential consolidation. Before the end of 2014 global regulators will also consult on simple, transparent and comparable securitisations. FSB has also launched, coinciding with the Brisbane Summit, a consultation on proposed standards for collecting and globally aggregating data on securities financing transactions;
  • a report and letter on progress in financial reforms, which highlights the delay in the implementation of those relating to OTC derivatives. FSB also announced that, from next year, it will start reporting on progress in shadow banking reform in a similar manner. In this respect, IOSCO has published preliminary findings of its peer reviewing work (see below); and
  • a review of the representation structure at FSB, which seeks to strengthen the voice of emerging and developing economies.

Mark Carney, FSB chairman, also reviewed the progress made in financial reforms in a speech at the Monetary Authority of Singapore, and called for a diverse, trustworthy and open global financial system. The G-20 has welcomed this progress, in particular recent proposals on total loss absorbency capacity and the unfolding shadow banking measures, and has encouraged jurisdictions to be ready to defer on each other in cross-border derivatives supervision. (Source: Press ReleaseStandards and Processes for Global Securities Financing Data Collection and AggregationSpeech by Mark Carney and G-20 Communique)