Working Groups and Committees

The SCRC is the senior group within the IIF responsible for coordinating efforts in the area of regulatory capital and liquidity requirements. It plays a central role in leading industry responses to the Basel III reform proposals and engaging in dialogue with the Basel Committee. This Committee also works in collaboration with the SCER (see below) on systemically relevant issues of institutions. Membership within the committee is comprised exclusively of senior executives from IIF member banks and is by invitation only. The following SCRC working groups are called upon periodically for relevant consultations: 

• Working Group on Capital Adequacy (WGCA): The WGCA interfaces with several of the Basel Committee’s sub-groups to address technical issues, especially in regard to credit risk, leverage and capital, including related issues such as large exposures. 
• Working Group on Market Risk (WGMR): The WGMR interfaces with the Basel Committee to address any issues related to the Basel requirements for market risk, including the presentation of impact data. This working group is also involved in the Joint Trades Counterparty Credit Risk project as well as examining any issues related to the IBOR transition process.
• Disclosure Working Group (DWG): The Disclosure Working Group provides a voice for banks on global risk disclosure issues. The DWG address issues on improvement of risk disclosures of banks mainly focusing on the work by the Financial Stability Board and the Basel Committee on Banking Supervision. The DWG also seeks constructive ways to improve disclosure across the global financial services industry, including reducing redundant or outmoded disclosures.

The Senior Accounting Group addresses accounting issues of significance from a cross-border perspective, including such questions as provisioning, hedge accounting, fair-value measurement, disclosure, and IFRS-US GAAP convergence. It participates in regular dialogue with the International Accounting Standards Board (IASB), the Financial Accounting Standards Board (FASB), the Accounting and Audit Expert Group of the Basel Committee (AAEG), the Financial Stability Board (FSB), and the U.S. Securities and Exchange Commission (SEC).

The SCER oversees the Institute’s participation in the ongoing dialogue between the official sector, including the Financial Stability Board (FSB) and G20. It aims at identifying effective and efficient approaches for cross-border regulation, and it aims to provide private-sector input to the global dialogue on development of a new financial regulatory architecture. Membership within the committee is by invitation only. The following SCER working group is called upon periodically for relevant consultations:

• Cross-Border Resolution Working Group (CBRWG): The CBRWG develops industry views on resolution-related issues such as bail-in, international cooperation on resolution, requirements for Total Loss Absorbing Capacity (TLAC), and recovery and resolution plan requirements for banks as well as resolution issues affecting Central Counterparties and other Financial-Market Infrastructure entities. The group participates in regular colloquia with the official sector and other stakeholders.  

The Insurance Regulatory Committee, which is composed of senior executives of IIF member insurers, provides strategic guidance, leadership and oversight with respect to the insurance advocacy activities of the IIF. The IRC promotes the IIF’s role in insurance advocacy with global insurance standard setters and contributes an insurance perspective to major IIF events such as the Annual Membership Meeting. The IRC reviews and approves an annual work program for the Insurance Working Group.

• Insurance Working Group (IWG): The Insurance Working Group is responsible for implementing the insurance advocacy agenda of the IIF under the strategic guidance, leadership and oversight of the IRC. IWG participants include senior members of the government affairs and public policy, risk management, legal and regulatory teams of IIF member insurers. The IWG discusses and comments on proposals related to systemic risk and financial stability, risk management, prudential standards and climate-related risks. Members of the IWG also participate on other committees and working groups of the IIF, notably the Sustainable Finance Working Group, the Digital Finance Working Group and the Cyber Security Working Group.

The NBFI Working Group is tasked with addressing regulatory issues and policies affecting factors and activities in the area of non- bank financial intermediation. This group is particularly focused on initiatives undertaken by the G20, Financial Stability Board and IOSCO impacting funding and credit markets, including money market funds (MMFs), investment funds, bond markets, etc. The Working Group will help to ensure that any proposed policy measures are based on adequately assessed risks and also properly account for the diversity of institutions active in this area.

The IIF Cyber Security Working Group brings together IT, security and regulatory experts to exchange information and develop positions around cybersecurity issues impacting the financial services industry. The working group is focused on the potential impact of cyber incidents on financial stability and working closely with standard setters to promote more coordinated and consistent regulatory approaches to address the growing regulatory fragmentation that can be found across jurisdictions and across (financial) sectors. There is additional work being undertaken in areas such as Cyber Risk Insurance and Third-Party Vendor risk related to cyber security, including operational risks related to Cloud Computing.

This Steering Committee on Operational Resilience analyzes and contributes to global developments on the discipline of operational resilience, which expands upon areas such as business continuity, cyber security, ICT risk, and recovery and resolution planning. This group hosts a symposium once or twice per year, bringing together leading public sector officials and senior industry practitioners. It also responds to public sector consultations and is in regular dialogue with the Basel Committee on Banking Supervision, Financial Stability Board (FSB), the International Organization of Securities Commissions (IOSCO), and key jurisdictions, including Australia, Canada, the European Union, Hong Kong, Singapore, South Africa, the UK, and U.S.

The AML/ATF Working Group contributes to the growing global debate on Anti-Money Laundering and Anti-Terrorist Finance regulations and their impact not only on banks and asset managers but on global commerce and vulnerable countries in the global financial system. The Working Group responds to official consultations on AML/ATF issues and seeks ways to increase understanding of the industry’s issues when dealing with AML/ATF regulation and enforcement actions. The Institute also organizes regular colloquia in Europe and North America on issues related to AML and ATF regulation, including questions of “de-risking” and financial inclusion, especially regarding their impact on Emerging Market countries. The aim is to seek constructive solutions to AML/ATF problems while minimizing negative fallout effects on the overall economy.

The CGIP seeks to identify and promote sound industry practices in the areas of risk management, risk governance, corporate governance and compensation. It works with the supervisory community on identifying ways in which such practices can be leveraged as part of the supervisory oversight of firms, for example on requirements and practices for gathering and analyzing risk data.

• Data and IT Issues Working Group: The Data and IT Issues Working Group focuses on regulatory IT and data requirements for member firms, including interaction with the Basel Committee’s Working Group on Systemically Important Bank Supervision, especially on the interpretation and implementation of the Basel Principles of Risk Data Aggregation; with the Financial Stability Board (FSB) in its ongoing Data Gaps Initiative to fill the international data gaps identified in connection with G20 priorities and to develop an international Common Data Template; and with the Senior Supervisors’ Group in its work and pronouncements on data quality and data governance issues. In general, it organizes efforts to provide a voice for firms, at the international level, to put forward their views and issues, focusing on integrated and strategic solutions to the many and varied demands on banks’ IT and human resources to meet data and information requirements for regulatory, risk-management and business purposes.
• Corporate Governance Working Group: The Corporate Governance Working Group engages in discussions and works on sound practice in the area of global industry governance and on standards/principles developed by the international regulatory community which address misconduct and compensation risk.

The Digital Finance Working Group guides and oversees the IIF’s advocacy on digital and innovation regulatory and policy issues. Its scope includes topics related to data (including data-sharing, data-protection and data-localization), new entrants and competition, ‘RiskTech’ (adoption of innovations to improve risk management, including RegTech), crypto-currencies and distributed ledger technology and cyber-security. Where this working group focuses on the strategic agenda, it is in some cases supported by other technical working groups. Membership of this working group is open to banks, insurers and asset managers.

The Steering Committee on Digital Finance provides strategic direction to the IIF’s Digital Finance activities, setting and reviewing priorities across data policy, digitalization and emerging technologies. This includes ensuring appropriate guidance and direction for IIF activities, as well as enabling input from Digital/Innovation leaders to help shape the broader IIF agenda, under the auspices of members of the IIF Board of Directors. IIF member firms are welcome to nominate a C-Suite representative to join the Committee. Chief Digital/Innovation/Transformation Officers are the most common ‘peer group’ on the Committee, but some diversity of roles (eg. Business Unit Lead, Chief Risk Officer, Chief Data Officer) is also welcome, to support an exchange of broader perspectives. Each Committee member may also nominate an ‘alternate’ from their firm.

Launched in 2009, the MMG focuses on structural changes in financial markets, the regulatory environment, and the global economy that may be sources of potential systemic risks. The group convenes Chief Risk Officers and other senior market practitioners from banks and institutional investors as well as academics and specialized consultancies. The MMG monitors emerging vulnerabilities including those related to changes in liquidity provision and the impact of new financial technologies; mispriced assets, crowded trades and concentration risk; deterioration in business practices; and other nascent risks of concern to the industry and policymakers. The group explores ways to contain these risks and shares its views with market participants and public-sector bodies in an effort to enhance financial stability.

The MMG holds meetings as well as conference calls and regular briefing and support from IIF staff. Particular emphasis is placed on regular communication with relevant public-sector bodies including the Financial Stability Board, the U.S. Financial Stability Oversight Council, the European Systemic Risk Board, the IMF, and other key policy-setting bodies and research centers. Membership in this group is subject to co-chair approval.

The IIF Future Leaders Group is comprised of dynamic young leaders representing some of the brightest emerging talent in the industry. Each annual class of Future Leaders meets twice a year, generally around major IIF meetings, for a multi-day program designed to introduce them to the big ideas and topics that will drive the future of the industry. Participation in Future Leaders is open to those 40 or under who have track records of achievement within their institutions and have the potential, in the nominating institutions’ view, to become a leader in global finance. Participation is by invitation only and participants are nominated by a member firm’s senior management.

Established in 2008, the Emerging Markets Advisory Council (EMAC) serves as a forum to help enhance the voice of emerging markets institutions within the IIF, and more broadly in the ongoing discussions on the reform of the global financial system. The Council is comprised of Chief Executive Officers/Chairmen of major financial institutions headquartered or located in emerging markets countries. EMAC membership is fee based and by invitation only.

Through regular meetings EMAC members have the opportunity to discuss issues specifically relevant to emerging markets, to be briefed by IIF senior staff on their workstreams and special initiatives focused on emerging markets, and to share concerns that the IIF can then help bring into focus with its wider membership. When needed, the Council also forms working groups from among its membership to pursue issues of special concern to emerging markets financial institutions. The Council initiated the Emerging Markets Bank Lending Conditions Survey, now a proprietary product of the IIF, and also examines key issues with implications to emerging markets, including the post-crisis regulatory framework, the development of local currency debt markets and credit ratings of emerging market financial institutions.