The Chair of the Financial Stability Board (FSB) addressed a letter to the G20 Finance Ministers and Central Bank Governors (FMCBG) ahead of their meeting on October 13-14, 2022. The letter outlines the work FSB is undertaking to tackle financial stability issues, along with the reports being submitted to the October G20 FMCBG, which address climate-related financial risks and cover a regulatory framework for crypto-assets, improving cross-border payments, and containing cyber risks.
Below are the key highlights of certain recently published reports:
- FSB proposed a framework for the international regulation of crypto-asset activities. One of the core components of this framework are proposals for recommendations that promote the consistency and comprehensiveness of regulatory, supervisory, and oversight approaches to crypto-asset activities and markets and strengthen international cooperation, coordination, and information-sharing. The second key component constitutes the revised high-level recommendations for the regulation, supervision, and oversight of “global stablecoin” arrangements to address associated financial stability risks more effectively. The proposed recommendations have been issued for public consultation until December 15, 2022. The FSB aims to finalize the updated high-level recommendations on stablecoin arrangements by July 2023, reflecting comments received through public consultation.
- FSB published a consultative document on achieving greater convergence in cyber incident reporting. The proposals take a comprehensive approach and include recommendations to address the challenges to achieving greater convergence in cyber incident reporting. The consultation also covers further work on establishing common terminologies related to cyber incidents and the proposal to develop a common format for incident reporting exchange (FIRE). A review of incident reporting templates and stocktake of authorities’ cyber incident reporting regimes indicated a high degree of commonality in the information requirements for cyber incident reports. Building on these commonalities, FSB proposes the development of a common reporting format that could be further considered among financial institutions and financial authorities. FSB is inviting feedback on this consultative document, in particular on the questions it has set out by December 31, 2022.
FSB published the priority themes for the next phase of work under the G20 Roadmap for Enhancing Cross-Border Payments, two years after the Roadmap was launched. The plan includes the practical steps to be taken to strengthen external engagement during this next phase of the work. Three priority themes that have been identified for the Roadmap to focus on in the next phase are payment system interoperability and extension; legal, regulatory, and supervisory frameworks; and cross-border data exchange and message standards. FSB also published a report on the progress made during the second year of the Roadmap, bringing together in one place the wide-ranging, interconnected work under the different building blocks of the Roadmap.
- Letter to G20
- Proposed Crypto Framework and Related Documents
- Recommendations on Stablecoins
- Proposals on Cyber Incident Reporting
- Cross-Border Payments Roadmap
- Progress and Priorities for Cross-Border Payments
Keywords: International, Banking, Crypto Assets, Cyber Risk, Cyber Incident Reporting, Cross Border Payments, Financial Stability, Roadmap, Stablecoins, FSB
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.
The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.