FSB publishes resolution planning guidance for global banks and reports on the implementation of resolution reforms. The FSB announced that it has published two guidance documents to assist authorities in implementing the FSB’s standard on Total Loss-Absorbing Capacity and facilitating the continued access to critical financial market infrastructure services in resolution. It also published its sixth report on the implementation of post-crisis resolution reforms. (7/6/2017)
FSB publishes progress report on actions to tackle misconduct in the financial sector. The FSB announced that it has published a progress report for G20 Leaders on its workplan to reduce misconduct in the financial sector. (7/4/2017)
FSB reports to G20 Leaders on progress in financial regulatory reforms. The FSB announced publication of its annual report, Chair’s letter and framework for evaluation of reforms ahead of G20 Leaders’ Summit. (7/3/2017)
FSB publishes assessment of shadow banking activities, risks and the adequacy of policy tools. The FSB announced publication of an assessment of the evolution of shadow banking activities and risks since the global financial crisis, and the adequacy of post-crisis policies and monitoring to address these risks. (7/3/2017)
FSB reports on reforms to OTC derivatives markets. The FSB announced the release of three reports on implementation and effectiveness of reforms to OTC derivatives markets. (6/29/2017)
Task Force publishes recommendations on climate-related financial disclosures. The FSB announced that it has welcomed the publication of the recommendations for effective disclosure of climate-related financial risks published by the industry-led Task Force on Climate-related Financial Disclosures. (6/29/2017)
IOSCO consults on recommendations and good practices in liquidity risk management for funds. IOSCO announced that it has published the consultation paper, Recommendations of Liquidity Risk Management for Collective Investment Schemes, which seeks to address structural vulnerabilities arising from asset management activities, as part of its mission to protect investors and mitigate systemic risk in global financial markets. IOSCO also published another consultation paper that provides practical information, examples and good practices regarding open-ended fund liquidity risk management, to supplement its recommendations. (7/6/2017)
BCBS and IOSCO propose criteria for identifying simple, transparent and comparable short-term securitizations. The Basel Committee on Banking Supervision and IOSCO announced that they have released the consultative document Criteria for identifying simple, transparent and comparable short-term securitizations. (7/6/2017)
International committees complete workplan on CCP resilience, recovery and resolvability. The FSB, the Committee on Payments and Market Infrastructures, IOSCO and the Basel Committee on Banking Supervision announced that they have published three guidance documents and two reports as part of their joint workplanon central counterparty resilience, recovery and resolvability. (7/5/2017)
ISDA information sheet on requirements for market participants to obtain LEIs. The International Swaps and Derivatives Association, along with the Global Financial Markets Association, offered guidance on new requirements under EU rules for all market participants to obtain a Legal Identity Identifier in order to participate in certain financial transactions. (6/28/2017) ISDA information sheet.
.IOSCO, CPMI propose framework for supervisory stress testing of central counterparties. IOSCO and the Committee on Payments and Market Infrastructures requested comments on a proposed framework that offers guidance to authorities on how to design and run supervisory stress tests for central counterparties. Comments are due on or before September 22, 2017. (6/28/2017) IOSCO press release.
FSB report on the financial stability implications from FinTech. The Financial Stability Board published a report that analyses the potential financial stability implications from FinTech. The report identified three priority issues that require supervisory and regulatory attention, including the need to manage operational risk from third-party service providers; the need to mitigate cyber risks; and the monitoring of macrofinancial risks that could emerge as FinTech activities increase. (6/27/2017) FSB press release.
IOSCO, CPMI publish consultative report on harmonizing OTC derivatives data elements. IOSCO and the CPMI requested comments on a consultative report that proposes a third set of guidance on the harmonization of data elements reported to trade repositories for the aggregation of data by authorities, including the Unique Transaction Identifier (UTI) and the Unique Product Identifier (UPI). The latest report focuses on critical OTC derivatives data elements other than UTI and UPI. Comments are due on or before August 30, 2017. (6/27/2017)
Basel Committee notes diverse practices in implementing the countercyclical capital buffer policy. The Basel Committee on Banking Supervision published a document that examines the various practices used by a range of jurisdictions in implementing their policies on the countercyclical capital buffer (CCyB). The Committee’s review found that CCyB policy frameworks differ widely with respect to their governance structures; the number of indicators used to identify periods of excess credit and systemic risk; the degree of reliance on formal versus judgmental approaches in making CCyB decisions; and their communication and reciprocity practices. (6/22/2017) BIS press release.
FSB proposes guidance on the use of compensation tools to address misconduct. The Financial Stability Board requested comments on a consultation draft that proposes guidance on the use of compensation tools to address misconduct. The proposed guidance offers firms and supervisors a framework to consider how compensation practices and tools, such as in-year bonus adjustments, malus and clawback, can be used to reduce misconduct risk and address misconduct incidents. Comments are due on or before August 30, 2017. (6/20/2017) FSB press release.