Securitisation and Regulation News

FSB encourages further work to enhance financial institutions' risk disclosure practices

The Financial Stability Board (FSB) has agreed to take steps to encourage improved risk disclosures by financial institutions.  In particular, the FSB has indicated that it will: (1) facilitate the formation of a joint private sector task force to develop principles for improved disclosures based on current market conditions and risks, including ways to enhance the comparability of disclosures; (2) encourage the task force to engage in a dialogue with standard-setting bodies; (3) ask the task force to identify leading practice risk disclosures presented in annual reports for end-year 2011; and (4) consider holding another international roundtable in late 2012 to facilitate further discussion by the private sector, regulators and supervisors to encourage further progress.

The decision follows the FSB's December 2011 roundtable and the recommendations set out in its March 2011 report on risk disclosures.

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