Regulatory and Supervisory Modernisation Principles: consultation report

What it contains

The consultation report, published on 14 October 2026 at the request of the US G20 Presidency, proposes eight principles for the financial authorities of FSB member jurisdictions to modernise their regulatory and supervisory frameworks, including supervisory processes and practices. It starts from the view that the framework built after the global financial crisis has allowed the sector to absorb shocks rather than transmit them, but that it must adapt to new vulnerabilities, technologies and economic conditions, and check whether it has produced inefficiencies or negative consequences that can be reduced without lowering resilience. The principles are high level and leave each authority to decide how to apply them.

The principles call for: (1) practising modernisation on an ongoing basis, assessing whether rules achieved their intended outcomes or should be recalibrated, strengthened or eliminated; (2) considering proportionality and tailoring to the nature, size, complexity, risk profile, business model and systemic importance of each institution; (3) focusing on material risks, while preserving the ability to act on emerging vulnerabilities; (4) effective and efficient supervision, forward-looking, risk-based and transparent, using technology with governance and human oversight to complement, not replace, supervisory judgement; (5) forward-looking, clear and consistent regulatory frameworks; (6) coherence among authorities within the same jurisdiction; (7) transparency and accountability in policymaking, with stakeholder consultation and analysis of costs, benefits and cumulative impact; and (8) efficient, necessary and proportionate reporting and disclosure, coordinating the collection of information to avoid duplication.

It all rests on four shared understandings: financial stability underpins sustainable growth; the principles build on the commitment to implement international standards; their application must respect each jurisdiction’s legal framework; and they aim to preserve or enhance existing resilience. The report makes clear that the principles do not presume greater or lesser stringency. It draws on a stocktake of members’ modernisation efforts (27 respondents reported 126 efforts) and on a symposium held in Basel on 9 June 2026, and includes case studies from several countries and 14 questions for the consultation. Risks identified by the members themselves include oversimplifying supervision, under-calibrating prudential requirements, a perception of a race to the bottom, and fragmentation.

This summary describes the public consultation version (comments are received until 8 January 2027). The text may change in the final report; the summary will be updated when it is published.

Resumen elaborado por el Club de Gestión de Riesgos de la República Dominicana a partir de la lectura del documento original, con fuente verificada el 7 de noviembre de 2026. No sustituye la lectura del texto oficial ni constituye asesoría.

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