Financial stability in a rapidly changing world

FSB Chair Andrew Bailey used the IOSCO 25th anniversary platform to emphasise that transparency and cross-border cooperation are central to identifying and managing systemic risks in a fast-changing financial system. For compliance and risk teams, the immediate message is directional: expect continued supervisory focus on how firms identify, report and escalate emerging systemic risks, and on how they cooperate with authorities and counterparties across borders. There are no new binding obligations or deadlines in the announcement, so firms should avoid overreacting but should use it as a prompt to review existing financial stability risk frameworks, board-level risk reporting, and cross-border coordination arrangements.

Actionable steps include mapping exposure to evolving systemic risk themes, testing the clarity of internal and regulatory reporting, and ensuring governance committees can respond quickly to international supervisory expectations. Firms should also monitor forthcoming FSB and IOSCO workstreams for signals that could become more concrete requirements. Overall impact is informational, with low immediate urgency, but the direction of travel supports proactive engagement and robust transparency.