By Central Bank News
The Financial Stability Board, the global financial reform body that was created by Group of 20 leaders without a formal legal status, does not believe it needs the legitimacy of an international treaty to carry out its work right now, the FSB said in a report to the G20.
Instead, the FSB, whose legitimacy has been questioned, said it could be given a legal form by creating an association under Swiss law and a draft of the articles should be formulated.
The FSB, which is widening its steering committee to make it more representative, said it would not levy membership fees but continue to rely on the Bank for International Settlements (BIS) for funding.
And in a move that should appease critics of its lack of transparency, the FSB said it “should adopt a structured mechanism for public consultation on FSB policy proposals; it should also engage in dialogue with market participants and other stakeholders, including through round-tables, hearings and other appropriate events.”
Click to read “Report to the G20 Los Cabos Summit on Strengthening FSB Capacity, Resources and Governance.”
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