One Canadian regulator's reforms made the list, and the industry has until January to weigh in
On October 14, 2026, the Financial Stability Board proposed that financial regulators give their rulebooks a regular tune-up, with OSFI's reforms among its examples.
The FSB prepared the consultation report, Regulatory and Supervisory Modernisation Principles, at the request of the US G20 Presidency. The eight principles are aimed at financial authorities in FSB member jurisdictions, and comments are open until January 8, 2027.
The FSB says its work is not binding, but if the principles are finalized, member authorities would commit to putting them into practice, each in its own way.
A rulebook that keeps getting checked
The big idea is to make modernization a habit. Regulators would keep asking whether their frameworks are doing what they were meant to do, or could be adjusted, strengthened or dropped. They would also consider matching requirements to each institution's nature, size, complexity, risk profile, business model and systemic importance.
The other six ask regulators to zero in on material risks, run efficient supervision, keep regulation forward-looking, line up with other regulators at home, consult widely and weigh costs and benefits, and keep reporting demands efficient and proportionate. Supervisors adopting new technology would keep human oversight in place so the tools complement, not replace, their judgment.
The FSB also sets some ground rules. The principles must fit each jurisdiction's laws and circumstances, and they aim to preserve or strengthen the financial system's current resilience. "The proposed principles do not presume a specific outcome or call for greater or lesser stringency in regulatory and supervisory frameworks," the report states.
OSFI's reforms make the case-study list
Canada shows up four times in the report's case studies, which the FSB calls illustrative rather than prescriptive. The first features the Capital Requirement Innovation initiative at the Office of the Superintendent of Financial Institutions (OSFI), an ongoing review of capital requirements that has produced targeted reforms, including changes to the maximum range for Canada's Domestic Stability Buffer.
The second looks at security. According to the report, Canadian authorities spotted an increasing trend of foreign actors targeting financial institutions, exposing banks and insurers to integrity and security risks. In response, OSFI's legal mandate was expanded, and OSFI has started reviewing its Supervisory Framework and Guides to Intervention.
The last two are about speed and predictability. OSFI is introducing a fast-track approval path with set timelines for certain newcomers, such as federal credit unions and innovative or emerging banking models. It also releases new and updated policies on four pre-set dates a year, followed right away by public industry days.
Fund managers and dealers are in the picture too
Banks are not the only ones in the frame. The FSB's survey counted 126 modernization efforts from 24 jurisdictions and three standard-setting bodies. Banks and credit institutions fell within 81 of them, asset managers and investment funds within 46, and market intermediaries such as broker-dealers within 45.
Some respondents also flagged risks, including oversimplifying supervision or setting safety requirements too loosely, to a degree that could affect financial stability. Some also warned that certain efforts could be misread by the public and regulated firms as a race to the bottom. Fragmentation and change management were also commonly reported.
One of its 14 consultation questions asks how the principles could affect market participants, and responses will be posted on its website unless respondents expressly ask otherwise. "The FSB seeks comments on all aspects of this consultation report and plans to finalise the report following consultation," the report states.
The full text of Regulatory and Supervisory Modernisation Principles: Consultation report is available at https://www.fsb.org/2026/10/regulatory-and-supervisory-modernisation-principles-consultation-report/.
