Governments have agreed to establish a new Financial Stability Board (FSB) with a strengthened mandate and enlarged membership, as a successor to the Financial Stability Forum (FSF). New principles on remuneration will be implemented to guarantee the sustainability of compensation schemes and to prevent the financial market participants from focussing excessively on short term returns.
Regulation and oversight will be extended to all systemically important financial institutions, instruments and markets. This will also embrace, for the first time, systemically important hedge funds. The FSB will co-operate with the International Monetary Fund (IMF) to identify systemic economic and financial risks.