In response to the issues raised at the G-20 summit in Seoul in November 2010, the Financial Stability Board (“FSB”) was requested, in collaboration with other international standard setting bodies, to develop recommendations to strengthen the oversight and regulation of the shadow banking system by mid-2011. In response to the G-20’s request the FSB formed a task force to develop initial recommendations for discussion that would: (i) clarify what is meant by the shadow banking system; (ii) set out potential approaches for monitoring the shadow banking system; and (iii) explore possible regulatory measures to address the systemic risk and regulatory arbitrage concerns posed by the shadow banking system.