On September 25, 2015, the FSB convened to discuss its ongoing workplan. The FSB discussed issues including ending too-big-to-fail, transforming shadow banking into resilient market-based finance, risks associated with market liquidity and asset management activities, reducing misconduct and the prospective policies that could mitigate potential risks. Further to the FSB's consultation last year which proposed a global standard for Total Loss-Absorbing Capacity to be applied to Global Systematically Important Banks, addressing the risks of bail-outs funded by taxpayers, the FSB has now agreed the draft final principles and supports the consistent implementation of this standard. Amongst other things, the FSB has also identified areas in which it aims to conduct further detailed analysis relating to structural vulnerabilities in asset management, such as the mismatch between liquidity of fund investment and redemption terms of conditions for fund units, leverage within investment funds and securities lending activities of asset managers and funds.
The press release is available at: http://www.financialstabilityboard.org/wp-content/uploads/September-Plenary-press- release.pdf.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.