Financial Stability Board consults on eight principles to modernise regulation and supervision while preserving resilience

The Financial Stability Board (FSB) has launched a consultation on eight proposed principles for financial authorities to modernise regulation and supervision while preserving or enhancing existing financial system resilience. The proposals promote ongoing reviews to address emerging risks, unnecessary complexity and unintended consequences, rather than prescribing greater or lesser regulatory stringency. They build on commitments to implement internationally agreed standards and allow implementation to reflect domestic legal frameworks and circumstances. Requested by the US Group of Twenty presidency, the report draws on 126 modernisation efforts reported by 24 jurisdictions and three standard setters, alongside the FSB’s June 2026 symposium on proportionality and impact analysis. The principles encourage authorities to consider tailoring requirements to institutions’ characteristics and systemic importance, while prioritising risks material to financial stability, institutional safety and soundness, or other mandated objectives. Supervisors should communicate expectations clearly, act promptly on material risks and streamline routine processes. Technology should complement, not replace, supervisory judgment, with appropriate governance and human oversight. Regulatory frameworks should remain responsive to innovation and changing business models while reducing unnecessary overlap. Authorities should also coordinate domestic frameworks and information collection to minimise duplicative reporting. For significant policy changes, they should consult stakeholders and assess expected costs, benefits and cumulative effects across frameworks, rather than evaluating each measure in isolation.