The Joint Forum, a group of senior financial sector supervisors from the Basel Committee on Banking Supervision, the International Organization of Securities Commissions and the International Association of Insurance Supervisors (IAIS), has released its Review of the Differentiated Nature and Scope of Financial Regulation-Key Issues and Recommendations (report). The G20 requested the report through the Financial Stability Board.

The report was designed to identify potential areas where systemic risks is not captured in the current regulatory framework and make recommendations on improvements needed to strengthen the regulation of the financial system. The report analyses key issues arising from the differentiated nature of financial regulation in the international banking, securities, and insurance sectors. It also addresses gaps arising from regulation, focusing upon certain unregulated or lightly regulated entities or activities. The report’s recommendations focus upon issues arising from regulatory differences across the three sectors, and regulation of financial groups, residential mortgage origination, hedge, and credit risk transfer.