FSB – Financial Stability Board

  • fsb.org/
  • youtube.com/user/FinStbBoard
  • The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system.
    • It was established after the G20 London summit in April 2009 as a successor to the Financial Stability Forum (FSF).
    • The Board includes all G20 major economies, FSF members, and the European Commission.
    • Hosted and funded by the Bank for International Settlements, the board is based in Basel, Switzerland. – [Wikipedia]
  • Widespread misconduct in the financial sector on a broad scale creates mistrust, weakening the ability of markets to allocate capital to the real economy.
  • This in turn may give rise to systemic risks, which is why addressing misconduct is part of the Financial Stability Board’s (FSB) work programme.
  • Recent instances of misconduct have included collusion in the manipulation of wholesale markets and retail mis-selling schemes.

2018 04 – FSB – Strengthening Governance Frameworks to Mitigate Misconduct Risk: A Toolkit for Firms and Supervisors, Financial Stability Board – 78p

  • Table 1 – Examples of life insurance products and indicative risk ratings
  • Complex products with potential multiple investment accounts; and /or products with returns linked to the performance of an underlying financial asset Example of product names:
    • Universal Life
    • Variable Universal Life
    • Wrapper Insurance
    • Investment Linked Policies
    • Unit Linked Policies
  • Investment Linked Assurance Schemes
    • …offers the ability to hold funds and/or assets
    • …may offer the option of asset transfers into the policy
    • …full or partial underlying investments under control of the customer
    • …may have a high upper limit for the amounts of funds held
    • …higher risk compared with other life insurance

2018 1025 – FSB/FATf – Risk-based Approach Guidance for the Life Insurance Sector – 64p

2000s

  • 2008 1010 – FSB – FINANCIAL STABILITY FORUM – FSF Report on Enhancing Market and Institutional Resilience Reports on the follow-up of the recommendations – 3p

2010s

  • 2011 – FSB – Key Attributes of Effective Resolution Regimes for Financial Institutions in the Insurance Sector
  • 2012 0427 – FSB – Securities Lending and Repos: Market Overview and Financial Stability Issues, Financial Stability Board – 45p
  • 2013 – LR – The Financial Stability Board: The New Politics of International Financial Regulation, by Stavros Gadninis – 19p
  • 2013 0827- FSB – Peer Review of the United States – 65p
  • 2014 0108 – FSB – Consultative Document, Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions: Proposed High-Level Framework and Specific Methodologies (8 January 2014) – 44p
  • 2015 0304 – FSB – Consultative Document Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions: Proposed High-Level Framework and Specific Methodologies (4 March 2015) – 62p
  • 2015 0708 – GOV (Senate) – The Role of the Financial Stability Board in the U.S. Regulatory Framework
  • 2015 1103 – FSB – Developing Effective Resolution Strategies and Plans for Systemically Important Insurers Consultative Document, Financial Stability Board – 28p
  • 2016 0927 – GOV (House) – The Financial Stability Board’s Implications for U.S. Growth and Competitiveness
    • [PDF-84p, VIDEO-YouTube]
    • House – Committee on Financial Services – Subcommittee on Monetary Policy and Trade
  • 2018 04 – FSB – Strengthening Governance Frameworks to Mitigate Misconduct Risk: A Toolkit for Firms and Supervisors, Financial Stability Board – 78p
  • 2018 1025 – FSB/FATf – Risk-based Approach Guidance for the Life Insurance Sector – 64p