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Clifford Chance

Clifford Chance


Identifying investment fund G-SIFIs: FSB-IOSCO consult on non-bank, non-insurer global systemically important financial institutions

14 January 2014

On 8 January 2014, the Financial Stability Board (FSB) and the International Organisation of Securities Commissions (IOSCO) issued a consultative document (Consultation) on proposed methodologies to identify systemically important non bank non-insurer financial institutions (NBNIs). This is the latest step towards implementation of the FSB SIFI Framework, which requires, at the outset, identification of entities which are systemically important at a global level.  Similar methodologies have already been issued for banks (G-SIBS) and insurance companies (G-SIIs). In addition to proposing a general, high-level framework and operational approach, which would apply across the board to all NBNIs, the Consultation proposes specific methodologies for indentifying NBNI G-SIFIs in three key sectors – finance companies, market intermediaries (securities broker-dealers) and investment funds. The Consultation does not propose that any specific entity be designated as a NBNI G-SIFI, or describe any policy that might apply to them – this is to follow at a later date. The Consultation closes on 7 April 2014.

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