IAIS Global Seminar ComFrame: Update on Qualitative and Quantitative Standards Elise Liebers, Acting Chair of the Financial Stability and Technical Committee (FSTC) Old Windsor, 29 June 2017  

Objectives of ComFrame To establish standards focusing on the effective group-wide supervision of IAIGs, consisting of both qualitative and quantitative elements. To be a framework for supervisors to coordinate supervisory activities efficiently and effectively and share information about IAIGs at the group-wide level and between group-wide and host supervisors. To provide a basis for comparing IAIG regulation and supervision across jurisdictions as well as to reduce unnecessary compliance and reporting demands on IAIGs.

A lot has already been done this year…. Public consultation on ComFrame material: Released on 3 March for 90-day consultation period New structure, integrated with relevant ICPs, published for the first time Questions on costs and benefits to IAIG volunteers and supervisors. 2017 Quantitative Field Testing Exercise Launched in Early May with issuance of the technical specifications Workshops in Rome, Washington DC and Tokyo now completed Data due in September ICS Version 1.0 for Extended Field Testing to be published in July 2017

… and a lot is still to be done Reviewing feedback from the public consultation Next part of ComFrame material integrated with ICPs – to be released for public consultation in Q4, 2017 (ComFrame integrated with ICPs 15 and 16) Development of ICS Version 2.0 for mid-2018 public consultation Public consultation of overall ComFrame (integrated with relevant ICPs) including ICS version 2.0 (mid 2018) Adoption of ComFrame including ICS Version 2.0 and revised ICPs being foundation for ComFrame material (end 2019) Updating G-SII Assessment Methodology (2019) Adoption in 2022 of HLA based on ICS Version 2.0 to be applied to G-SII identified in 2020 based on the Methodology updated in 2019 (ICS + HLA)

Elements of the consultation package (March 2017) Introduction to ICPs and ComFrame and Assessment Methodology; Supervisor and Supervisory Measures: Revised ICP 9 (Supervisory Review and Reporting) and revised ICP 10 (Preventive Measures, Corrective Measures and Sanctions); ComFrame-specific material integrated with ICP 9 and ICP 10 (with ICPs 10 and 11 (Enforcement) combined into one ICP, i.e. ICP 10); Supervisory Cooperation and Coordination: Revised ICP 3 (Information Sharing and Confidentiality Requirements) and revised ICP 25 (Supervisory Cooperation and Coordination) ComFrame-specific material integrated with ICP 25, Governance: ComFrame-specific material integrated with ICP 5 (Suitability of Persons), ICP 7 (Corporate Governance) and ICP 8 (Risk Management and Internal Controls) Resolution: Revised ICP 12 (Exit from the Market and Resolution); ComFrame material integrated with ICP 12. * The current ICP 26 (Cross-border cooperation and coordination on crisis management) has been restructured and, consequently, part of it has been moved to ICP 25 and the rest to ICP 12. It is intended that all the requirements in ICP 26 are retained in other ICPs.

Public consultation in nutshell Contribution to the public consultation 39 stakeholders and 13 members Significant number of comments received High-level themes The integration exercise in general successful Outcome of cost-benefit analysis Clarity of ComFrame – crucial factor of the effective framework