Yesterday in Paris, the Financial Stability Forum (FSF) hosted its 16th Meeting. Members discussed risks and vulnerabilities in the international financial system and reviewed ongoing work to strengthen financial system stability and resilience.

**Offshore Financial Centres (OFCs)**

The Forum received a report on the work of its OFC Review Group that is continuing to monitor progress by FSF member bodies in working with OFCs to improve cross-border cooperation and exchange of information.

The FSF noted the progress made in some OFCs and urged its member bodies to continue their efforts, including monitoring the progress achieved to improve international co-operation. The FSF encouraged OFCs to continue to cooperate with IOSCO and to participate in the IMF’s ongoing assessment program in a timely fashion and to publish their IMF reports, including the detailed assessments. The FSF welcomed progress in implementing the IMF’s information framework initiative, and urged the few remaining jurisdictions yet to participate to do so.

Others matters discussed at the 16th meeting included mitigation of risk in financial systems, enhancing the effectiveness of regulation and standard-setting, effective and efficient regulation, and international standard setting practices. On the last, the Forum reviewed recent international accounting and auditing developments, including the need to achieve more consistent interpretations of International Financial Reporting Standards (IFRS) and the IASB’s “standard setting pause” under which no major changes to IFRS will become effective until 2009. They welcomed work on convergence and harmonisation underway between the IASB, the US FASB and other authorities. Members reiterated the important role that financial accounting and reporting standards play in safeguarding financial stability.

The next meeting of the Financial Stability Forum will be held in Frankfurt on 29 March 2007.