Status: Draft -- Not PublishedWill be live at 06/12/2017 00:00
IIF Comments on FSB Cyber Regulatory Stock-Take
On June 9 the IIF submitted a letter to the Financial Stability Board, commenting on their effort to better understand cyber risks, including a stock-take of existing cyber security regulation, as a basis for developing best practices in the medium-term. The IIF and its members are committed to working closely with the public sector on issues around cyber security, and particularly to address risks with implications for financial stability.
In this letter the IIF emphasized concern that increasing fragmentation of regulatory approaches by governments is presenting serious challenges to the ability of financial institutions to effectively address cyber risk. As regulatory attention to cyber risks increases, the IIF has observed an increasing number of proprietary national approaches. By underscoring the risks around regulatory fragmentation in their stock-taking, the FSB could help promote solutions that enable firms of all sizes to greater meet their compliance requirements, security needs, and facilitate improved coordination of cybersecurity supervisors. Increased coordination by international standard setters to promote common standards and approaches could both address the regulatory fragmentation and further support financial stability.