The work of the FSB’s Enhanced Disclosures Task Force (EDTF) has been taken relatively lightly until now. But evidence is growing stronger of the effect that disclosures have on investor decisions, including investors making specific requests that their banks take note of the EDTF’s work published last October.
Rachel Wolcott, writing for Accelus’ Compliance Complete, sets out the three main issues:
- Several high profile figures and institutions have put their names behind the EDTF’s recommendations: Mark Carney, Wayne Byres and some of the banks that participated in writing the project: Barclays, Deutsche Bank, DBS, HSBC, Santander and UBS;
- The principles enable greater comparability between banks, benefitting bank customers. Therefore, investor pressure will be key to compelling other banks to commit to implement the changes;
- The EDTF’s next step is to check up on bank’s implementation of their recommendations, and then to make further recommendations on that basis.
JWG is continuing its work in this area, looking at how the EDTF recommendations can be incorporated into other risk data initiatives, including the BCBS Principles for Effective Risk Data Aggregation and Risk Reporting.