FSB proposes guidance on bail-in execution and resolution funding. The Financial Stability Board requested comments on two proposals for guidance on the implementation of certain aspects of its Key Attributes of Effective Resolution Regimes for global systemically important banks. The first consultative documentproposes a set of principles to assist authorities as they make G-SIB bail-in resolution strategies operational. The second document sets out proposed guidance on the key funding strategy elements of a plan for funding in resolution. Comments on both proposals are due on or before February 2, 2018. (11/30/2017) FSB press release.
FSB RCG for Asia considers FinTech and other topics at recent meeting. The FSB published a summary of the discussions of its Regional Consultative Group for Asia at a meeting hosted by the Reserve Bank of Australia. Among other matters, the RCG for Asia discussed the regional impact of global financial system vulnerabilities, FinTech, the withdrawal of correspondent banking, and the use of macroprudential policies. (11/28/2017) FSB press release.
OTC Derivatives Compliance Calendar. The International Swaps and Derivatives Association updated its OTC Derivatives Compliance Calendar. (11/30/2017)
FSB releases public responses to consultation on UPI governance arrangements. The FSB published the comments it received to its consultation on proposed governance arrangements for the Unique Product Identifier. (11/23/2017) FSB press release.
IOSCO recommends good practices for protecting investors during the termination of investment funds. The International Organization of Securities Commissions issued a report on good practices for the termination of investment funds, which highlights the importance for investment funds of adopting termination procedures that take into account investor protection issues and identifies 14 good practices that apply to voluntary terminations. (11/23/2017) IOSCO press release.
IOSCO report analyzes data on global hedge fund industry. IOSCO released the results of its fourth survey of the global hedge fund industry, which analyzes hedge fund data to provide information regarding trading activities, leverage, liquidity management, markets, and funding in the global hedge fund sector. (11/23/2017) IOSCO press release.
Consultation on reforms to global audit standard setting. The Basel Committee on Banking Supervision announced the publication of a consultation paper by the Monitoring Group that proposes options and recommendations to further enhance the governance and oversight of international audit Standard Setting Boards that support auditing as a public interest activity. Comments are due on or before February 9, 2018. (11/22/2017) BIS press release. See also IOSCO press release.
FSB releases 2017 G-SIB list. The FSB published the 2017 list of G-SIBs, which the FSB determined using end-2016 data and the Basel Committee’s assessment methodology. The list includes 30 banks, with one new bank added to the 2017 list and one bank removed from the list of G-SIBs identified in 2016. (11/21/2017) FSB press release.
Basel Committee makes available additional G-SIB assessment information. The Basel Committee released additional information regarding the 2017 G-SIB assessment, including a list of all the banks in the assessment sample; the denominators of each indicator used to calculate the banks’ scores; the cutoff score used to identify the G-SIBs; the thresholds used to allocate G-SIBs to buckets for the purpose of calculating the specific higher loss absorbency requirements; and links to disclosures of all banks in the assessment sample. (11/21/2017) BIS press release.
FSB will not issue new list of G-SIIs in 2017. The FSB announced that it will not publish a new list of global systemically important insurers for 2017. The FSB made its decision in consultation with the International Association of Insurance Supervisors, which is working on an Activities-Based Approach to systemic risk that may significantly impact the assessment of systemic risk in the insurance sector and the identification of G-SIIs. (11/21/2017) FSB press release.
FSB RCG for Middle East and North Africa meeting. The FSB summarized the discussions of its RCG for the Middle East and North Africa at a recent meeting. Among other things, the RCG discussed the FSB’s ongoing work on the international post-crisis policy reforms, non-performing loans, the impact FinTech, and global and regional macroeconomic and financial market developments. (11/20/2017) FSB press release.
ISDA urges regulators to review new counterparty credit risk methodology. ISDA and the Association for Financial Markets in Europe examined the impact of the Standardized Approach for Counterparty Credit Risk, which is a new methodology for calculating the capital required to address the risk that the counterparty to a derivative contract will not live up to its contractual obligations. (11/20/2017) ISDA briefing note.
ISDA issues reminder on LEIs. ISDA encouraged market participants to take action to obtain a legal entity identifier to comply with new European regulations. (11/16/2017) ISDA fact sheet.
Meeting of FSB RCG for Sub-Saharan Africa. At a meeting in Pretoria, South Africa, the FSB RCG for Sub-Saharan Africa discussed the progress made on the G20 Compact with Africa, the FSB’s workplan for 2017/18, the decline in correspondent banking relationships, cross-border crisis management, and regional risks posed by cyberattacks. (11/15/2017) FSB press release.