Komfie Manalo, Opalesque Asia:
After nearly three years since its creation, Financial Stability Board has issued policy recommendations to strengthen the oversight and regulation of the shadow banking system, international law firm Clifford Chance said in a client briefing.
The recommendations came following the completion of the new capital standards for banks (Basel III) and reflected the G20 Leaders concern of the potential risk that regulatory gaps may emerge between the banking and shadow banking sectors. The policy recommendations will be considered by the G20 leaders at their meeting in St. Petersburg on September 5 and
Clifford Chance said in the briefing, "The FSB has focused on five specific areas – or workstreams – each chaired by an international standard setting body. The reports that have now been issued relate to the workstreams chaired by the FSB and are stated to take into account the responses received on the consultative documents issued in November 2012."
The International Organization of Securities Commissions (IOSCO) has already set out final policy recommendations on money market funds (MMFs) and Securitization in its reports Policy Recommendations for Money Market Funds and Global Developments in Securitization Markets. The Basel Committee on Banking Supervision (BCBS) is scheduled to comp......................
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