Welcome to the United Nations
The Financial Stability Board (FSB) is an international body that coordinates national financial authorities and international standard-setting bodies (SSBs) to promote international financial stability. The FSB was set up by G20 countries and includes 12 developed country jurisdictions as members, who present 56 per cent of the board chairs. The FSB’s membership includes ten large emerging market jurisdictions, the representation of several of which was increased as a result of governance reforms announced in 2014. Through its Regional Consultative Groups the FSB provides a forum for 65 non-member jurisdictions to discuss and feed into the work of the FSB.
The Basel Committee on Banking Supervision (BCBS), with a Secretariat is provided by the Bank for International Settlements, promulgates standards on banking regulation. Originally a body for the Group of Ten developed country central banks; the BCBS now has 16 developed country members holding 57 per cent of the chairs. The BCBS, after its expansion in 2009, includes 10 large emerging market jurisdictions in its membership and, more recently, three additional emerging markets jurisdictions as observers. The BCBS last undertook a major reform of its structures in 2009, inviting 14 new members to join the committee in that year, bringing the share of developing countries in the committee up from 0 to over 44 per cent. In 2014, three more developing countries joined the committee as observers. In 2007 the BCBS set up a Basel Consultative Group to facilitate dialogue with non-members. No major changes have been enacted since the Addis Agenda was agreed.
The International Accounting Standards Board (IASB) is a private body that promulgates accounting standards. The IASB was formed in 2001 to replace the International Accounting Standards Committee and had its first developing country member serve on the IASB board in 2007. The IASB is organised under an independent foundation named the IFRS Foundation, which conducted a constitutional review in 2015. The review concluded 30 November 2016 and resulted in shrinking the size of the board but also changing the geographical distribution of board. Now four members will come from the Asia-Oceania region; four members from Europe; four members from the Americas; one member from Africa; and one member appointed from any area.
The International Association of Insurance Supervisors (IAIS) sets standards on insurance industry regulation and supervision. It was founded in 1994 and has a membership of insurance supervisors and regulators from more than 200 jurisdictions in nearly 140 countries. Its 24-member Executive Committee is the key body for approving standards. While its by-laws call for the Executive Committee to be composed of an appropriate representation of the different geographic areas and different types of insurance markets, particularly in respect of the market sizes and development, it has no formal quota for regional representation. In 2000, 71 percent of the then-14-seat Executive Committee members came from developed countries, while in 2015, 10 developing country jurisdictions held seats, representing 42 per cent of the Committee.
The International Organization of Securities Commissions (IOSCO) sets standards on securities regulation. IOSCO agreed a major reform of its structures in 2012 creating an IOSCO Board with stronger participation of developing countries through the inclusion of more members of the growth and emerging markets committee and regional committees into the standard-setting body. Developing countries now hold about 53 per cent of the seats at IOSCO. IOSCO also launched regional hubs for capacity building in emerging markets in 2016.
The Financial Action Task Force (FATF) sets standards on combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. The FATF was established by the G-7 group of developed countries in 1989 and now has 36 members, 69 per cent of which are developed countries. It last expanded its membership when India became a full member in 2010, bringing developing countries up to over 31 per cent of its membership. Two observer countries from a developing region are currently working towards meeting the requirements for full membership of the FATF. Through nine FATF-style regional bodies, the FATF brings together a global network of 198 jurisdictions.
The Basel Committee on Payments and Market Infrastructure (CPMI), hosted by the Bank for International Settlements, sets standards on payment, clearing and settlement systems and related arrangements. The CPMI was created in 2014 after a review of the mandate of the Committee on Payment and Settlement Systems (CPSS) led to a renaming and new charter. The CPSS counted emerging market financial centres Singapore and Hong Kong among its members as far back as 2000, meaning that the 12 developed countries held 87 per cent of the votes at that time. Since 2010, ten developing countries are members, holding 40 per cent of the chairs, alongside the 14 developed countries members holding 15 chairs.