The Financial Stability Board And The International Organization Of Securities Commissions Propose Assessment Methodologies For Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions

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Shearman & Sterling LLP

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It is intended that the policy measures will be developed once the methodologies are finalized. Comments should be submitted by May 29, 2015.
Worldwide Finance and Banking

On March 4, 2015, the Financial Stability Board and the International Organization of Securities Commissions published for second public consultation Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions. The proposed methodologies for identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions ("NBNI G-SIFIs") take into consideration the responses received to the first consultative document issued in January 2014. These methodologies contain a high-level framework and an operational framework for identifying G-SIFIs that would apply across NBNI financial entities, as well as detailed NBNI sector-specific methodologies for finance companies, market intermediaries, investment funds and asset managers. The proposed methodologies provide for a more supervisory judgment compared to the G-SIB and G-SII methodologies to counter limitations in data availability and the range of business models of different types of NBNI G-SIFIs. The consultative document does not propose any specific entities for designation, nor any policy measures that would apply to NBNI G-SIFIs. It is intended that the policy measures will be developed once the methodologies are finalized. Comments should be submitted by May 29, 2015.

The second public consultation is available at: http://www.financialstabilityboard.org/wp-content/uploads/2nd-Con-Doc-on NBNI-G-SIFI-methodologies.pdf.

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