FSB consults on principles for regulatory and supervisory modernisation

The Financial Stability Board (FSB) has published a consultation report on proposed regulatory and supervisory modernisation principles. The report states that many financial authorities in FSB member jurisdictions have reviewed their regulatory and supervisory frameworks to ensure they support sustainable economic growth and remain adaptable to current and future material risks, without compromising financial stability or safety and soundness. The FSB proposes eight principles to promote alignment across these reviews. The principles are subject to the following four important understandings: (i) financial stability provides the foundation for sustainable economic growth, which in turn supports financial stability; (ii) the principles build on the commitment to implement internationally agreed standards; (iii) implementation of the principles must be consistent with jurisdictions' legal frameworks and circumstances; and (iv) the principles aim to preserve or enhance existing levels of financial system resilience. The deadline for responses is 8 January 2027. The FSB intends to publish the final report in the first half of 2027.

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