1. The expanded FSF has been re-established as the Financial Stability Board (FSB) with a broadened mandate to promote
2. The FSB consists of a Chairperson, a Steering Committee, the Plenary with member countries, SSBs and international financial
institutions, and a Secretariat. The Chair oversees the Steering Committee, the Plenary and the Secretariat.
3. The FSB Plenary is the decision making organ of the FSB. The Steering Committee provides operational guidance between
plenary meetings to carry forward the directions of the FSB. A full-time Secretary General and an enlarged Secretariat based
in Basel support the FSB.
4. Jurisdictions eligible for Plenary membership include the current FSF member jurisdictions plus the rest of the G20,
Spain and the European Commission. Eligibility will be reviewed periodically.
5. As obligations of membership, member countries and territories commit to pursue the maintenance of financial stability,
maintain the openness and transparency of the financial sector, implement international financial standards (including the
12 keyInternational Standard and Codes), and agree to undergo periodic peer reviews, usingamong other evidence IMF/World Bank
public Financial Sector Assessment Programreports. The FSB will elaborate and report on these commitments and the evaluationprocess.
6. The Plenary has country or regional representation drawn from authorities responsible for maintaining financial stability.
Representation is at the level of central bank governor or immediate deputy, head of the main supervisory/regulatory agency
and deputy finance minister. Plenary members also include the chairs of the main SSBs and central bankcommittees, and representatives
of the IMF, World Bank, the BIS and the OECD. TheFSB plenary will meet 2 times per year and have calls as needed.
7. Seat assignments in the FSB Plenary reflect the size of the national economy, financial market activity and national
financial stability arrangements. Delegations with more than one seat have one member seated at the back. Members sitting
at the back have the rights of the table. Representation at the table can be changed according to topic. The FSB Chair can
extend ad hoc invitations to non-members to attend plenary meetings.
8. The Steering Committee�s composition is decided by the FSB Chair in a manner that ensures maximum effectiveness
in taking forward the FSB�s work while having regard to balanced representation in terms of geographic regions and
institutional functions. The Steering Committee ensures effective information flow to the full membership.
9. Alongside the current mandate of the FSF � to assess vulnerabilities affecting the financial system, identify
and oversee action needed to address them, and promote coordination and information exchange among authorities responsible
for financial stability � the FSB will:
a) monitor and advise on market developments and their implications for regulatory policy;
b) advise on and monitor best practice in meeting regulatory standards;
c) undertake joint strategic reviews of the policy development work of the international SSBs to ensure their work is timely,
coordinated, focused on priorities and addressing gaps;
d) set guidelines for and support the establishment of supervisory colleges;
e) manage contingency planning for cross-border crisis management, particularly with respect to systemically important
f) collaborate with the IMF to conduct Early Warning Exercises.
10. In support of 9 c), the SSBs will report to the FSB on their work without prejudice to their existing reporting arrangements
or their independence. This process should not undermine the independence of the standard setting process but strengthen support
forstrong standard setting by providing a broader accountability framework.
11. To support the FSB�s role described in 9, the FSB Plenary will establish Standing Committees for Vulnerabilities
Assessment; Supervisory and Regulatory Co-operation (including for supervisory colleges and cross-border crisis management);
and Implementation of Standards and Codes. It may establish other Standing Committees and ad hoc working groups as necessary.
The Steering Committee may establish fastacting ad hoc workstreams as needed. Ad hoc working groups can include non-FSB member
12. Over time, the FSB will promote and help coordinate the alignment of international standard setting activities to address
any overlaps or gaps and clarify demarcations in light of changes in national regulatory structures relating to prudential
and systemic risk, market integrity and consumer protection, infrastructure, and accounting and auditing.
13. The FSB will step up its regional outreach activities to broaden the circle of countries engaged in work to promote
international financial stability. It will also engage in stronger public relations outreach to raise the visibility of its
work and role in the international financial system.
14. The FSB and IMF will intensify their collaboration, each complementing the other�s role as per the 13 November
2008 letter by the Managing Director of the IMF and the Chair of the FSF. The FSB and the IMF will collaborate in conducting
Early Warning Exercises and make a joint presentation to the IMFC on financial risks and vulnerabilities and policy recommendations
to mitigate such risks and vulnerabilities.