Regulatory and Supervisory Modernisation Principles: Consultation report

Key dates

2026-10-14

FSB published the consultation report proposing eight high-level regulatory and supervisory modernisation principles.

2027-01-08 Deadline

Deadline for submitting responses to the FSB consultation through the secure online form.

2027-01-01

FSB expects to publish the final report in the first half of 2027; the exact publication date is not specified.

Suggested considerations

• Compliance teams may wish to monitor the consultation and identify whether proposed approaches to proportionality, tailoring, materiality and impact analysis could affect the firm’s prudential, supervisory or reporting perimeter.
• Firms should consider preparing evidence-based comments or case studies, directly or through trade associations, on regulatory duplication, cliff effects, implementation costs, resilience outcomes and the consequences of applying complex-institution requirements to simpler business models.
• Regulatory affairs teams may wish to map current and planned consultations by home and host authorities against the FSB themes, particularly risk-based supervision, technology-enabled supervision, responsible innovation and framework coherence.
• Prudential and risk functions may wish to assess whether current data can demonstrate the firm’s size, complexity, systemic relevance, business-model risks and resilience if authorities introduce more differentiated requirements.
• Firms should not treat the consultation as permission to reduce existing controls or as a change to applicable law; existing internationally agreed standards and jurisdiction-specific requirements remain in force unless separately amended.
• Stakeholder-relations teams may wish to review communications about any future tailoring proposals so that efficiency measures are not characterised as reducing resilience or supervisory safeguards.

What changed

The FSB has proposed eight principles addressed to financial authorities rather than directly applicable obligations for regulated firms. The principles seek to improve the effectiveness, efficiency, risk focus, coherence and forward-looking nature of regulatory and supervisory frameworks, while remaining consistent with internationally agreed standards, national legal frameworks and jurisdiction-specific circumstances. The consultation specifically invites views on materiality-based risk prioritisation, proportionality and tailoring, management of cliff effects, impact-analysis assumptions and limitations, communication of modernisation efforts, predictable implementation, and the effects on market participants. No capital, liquidity, reporting, governance or other firm-level requirement

Who is affected

• Banks and banking groups subject to FSB member-jurisdiction prudential frameworks
• EU-authorised credit institutions and investment firms affected by future EU implementation of international standards
• US banks and bank holding companies potentially affected by future US supervisory or threshold changes
• Insurance groups, asset managers, broker-dealers, payment providers and other firms subject to future modernisation initiatives in FSB member jurisdictions
• All Firms

Related regulations

• Basel III
• FSB Key Standards for Sound Financial Systems
• Solvency II
• MiFID II
• AIFMD