Panelists’s Terms of References
High-Level Panel on the Governance of the Financial Stability Board
Background
At the height of the international financial crisis, following the G-20 summit in London in 2009, from the Financial Stability Forum a new body—the Financial Stability Board (FSB)—has been established. Comprising an enlarged membership, the FSB is charged with an expanded mandate to formulate and oversee the implementation of regulatory, supervisory and other financial sector policies. It does so by acting as a convening forum for national authorities responsible for financial stability in significant financial centers, international financial institutions, sector-specific international groupings of regulators and supervisors, and central bank experts.
This High-Level Panel initiative, coordinated by the Brookings Institution and funded by U.S. Connect, is part of a wider project that brings together three major institutions—the African Economic Research Consortium, New Rules for Global Finance, and the Brookings Institution itself—to examine and promote efforts towards global regulation of the financial system that is effective, inclusive, transparent and accountable.
Scope
Despite the growing importance of the Financial Stability Board, there is extremely limited knowledge as to how it operates and how it is governed. The objective of this initiative is to set up a High-Level Panel to evaluate the current FSB governance framework, on the basis of standards to be formulated by the Panel itself. These may include, for instance, actual outcomes vis-à-vis the FSB’s own Charter; transparency; arrangements to ensure that access to the FSB for non-financial stakeholders is comparable to that for financial sector stakeholders; the suitability for the FSB of an Independent Evaluation Office similar to the IMF’s IEO; possible constituency or rotational representation for non-represented countries; and relationships with international organizations and forums such as, for instance, the BIS, the IMF and the G20.
Output & Organization of Work
The Panel will publish its analysis and recommendations in a final report. To facilitate its deliberations, the Panel will rely on preparatory research and experts’ meetings. Domenico Lombardi, project’s director, will summarize preparatory research in an issues paper.
Timeframe and Output
The issues paper will be finalized for the Panel by the early summer of 2011. The Panel will formulate a summary options paper by September 2011 that will be presented at the margins of the ensuing Annual Meetings of the IMF and the World Bank in a public event at the Brookings Institution.
Time requirements for participating in the Panel are expected to be limited and panelists will be able to rely on some logistical and scholarly support.
Composition of the Panel
The composition of the Panel will reflect the following criteria:
1. The Panel will exhibit internationally-recognized expertise on the governance of multilateral institutions, as well as of other comparable entities.
2. The Panel will be able to draw from a wide range of background and experience by including academics, think-tank scholars, practitioners, and civil society actors.
3. The Panelists will deliberate with the utmost independence and integrity. In so doing, they will have no reporting duties to their respective institutions. As a rule, Panelists cannot be employees of the FSB or members sitting on the FSB’s own governance bodies.
4. Based on such criteria, the Panel will aim towards an adequate geographical balance across various regions, as well as between advanced and emerging and developing economies.