Under this framework, the FSB will foster a race to the top. FSB member jurisdictions will lead by example and undergo periodic peer reviews. The first review is on implementation of the FSB Principles for Sound Compensation Practices to be completed by March 2010.
Under this framework, the FSB will foster a race to the top. FSB member jurisdictions will lead by example and undergo periodic peer reviews. The first peer review is on implementation of the FSB Principles for Sound Compensation Practices and their Implementation Standards and will be completed in March 2010.
On 10 March 2010, the FSB launched an initiative to encourage all countries and jurisdictions to raise their level of adherence to international cooperation and information exchange standards, including by identifying non-cooperative jurisdictions and assisting them to improve their compliance.
The initial focus of the initiative is on adherence to international cooperation and information exchange standards in the financial regulatory and supervisory area. Financial markets are global in scope and, therefore, weaknesses in cooperation and information exchange can undermine the efforts of regulatory and supervisory authorities to ensure that laws and regulations are followed and that the global operations of the financial institutions for which they have responsibility are adequately supervised. These weaknesses therefore present risks to the global financial system.
The initiative is part of a framework that the FSB is putting in place for encouraging stronger adherence to international standards more broadly. In this framework, FSB member jurisdictions will lead by example. They have committed to implement international financial standards, participate in international assessments, and disclose their degree of adherence. In addition, FSB members will undergo periodic peer reviews focused on the implementation and effectiveness of international financial standards and of policies agreed within the FSB.
Section II summarises the process to be followed by the FSB for evaluating adherence to international cooperation and information exchange standards in the financial regulatory and supervisory area. Sections III, IV and V provide a more detailed description of the initiative. The FSB Standing Committee on Standards Implementation (SCSI), which is composed of senior officials from central banks, finance ministries, supervisory agencies and international bodies (see Annex A), is responsible for managing the initiative, under the direction of the FSB Plenary. An Expert Group under the SCSI has been formed to implement the initiative.
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