Some of the world’s biggest banks and insurers are facing tougher rules after global regulators designated them “too big to fail” — now, regulators are seeking to identify other sorts of financial firms that could pose similar risks.

The Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO) have published their proposed methodology for judging whether financial institutions, other than banks and insurers, should be considered systemically important.

In the wake of the financial crisis, policymakers have sought to identify firms whose failure could cause significant disruption to the financial system and the global economy — due to their size, complexity and systemic interconnectedness. In the banking sector for example, these firms will face tougher capital requirements and additional regulatory supervision, in an effort to reduce systemic risk and moral hazard.

Today, the FSB and IOSCO published their proposed assessment methodologies for identifying systemically important firms in other areas of financial markets, such as asset managers or brokerage firms. The proposals do not designate any specific entities as systemically important, or propose any added regulatory rules that would apply to them as a result of designation. For now, the regulators are simply determining how to identify financial entities that are large, complex, or interconnected enough to cause significant disruption if they were to fail.

“Today’s proposals are an essential first step towards addressing the risks to global financial stability and economic stability posed by the disorderly failure of financial institutions other than banks and insurers. They are integral to solving the problem of financial institutions that are too big to fail,” said Mark Carney, chair of the FSB.

Greg Medcraft, chairman of IOSCO, added that, “The development of assessment methodologies… is challenging as it needs to capture the wide range of business models and risk profiles in the non-bank non-insurer financial space while maintaining broad consistency with the overall SIFI framework. This public consultation will help us to better understand the market intermediaries and investment funds whose failure pose systemic risks. I look forward to industry views.”

The proposals are out for comment until April 7.