Hamburg
06 July 2017
Reporter: Mark Dugdale

Fend off reform fatigue, urges FSB


The Financial Stability Board (FSB) has called on the leaders of G20 nations to fend off reform fatigue and continue to work together through reinforced, voluntary, international regulatory cooperation grounded in agreed international standards.

Bank of England governor and FSB chair Mark Carney wrote to G20 leaders on 3 July ahead of their summit in Hamburg on 7 and 8 July to update them on the FSB’s progress in areas such as OTC derivatives reform and shadow banking.

Through a series of reports delivered over the last week on multiple subjects, the FSB appears to be largely pleased with its work since the financial crisis of 2008 to minimise risks in markets, with Carney telling G20 leaders that reforms “are building a safer, simpler and fairer financial system”.

“[But] there are nascent risks that, if left unchecked, could undermine the G20’s objective for strong, sustainable and balanced growth,” Carney warned.

Without naming US President Donald Trump’s aim to repeal and replace the Dodd-Frank Act, and possibly halt implementation of key Basel III reforms such as the net stable funding ratio, nor the UK’s decision to leave the EU, Carney said: “Giving into reform fatigue could erode the willingness of G20 members to rely on each other’s systems and institutions and, in the process, fragment pools of funding and liquidity, create inefficiencies and frictions, reduce competition, and diminish cross-border capital and investment flows.”

He added: “There is, however, another path that involves working together through reinforced, voluntary, international regulatory cooperation grounded in agreed international standards.”

These include encouraging full and consistent implementation of standards to support a level playing field and reduce regulatory arbitrage opportunities, and revising legal frameworks to facilitate cooperation.

On this last point, Carney gave the example of sharing information among authorities on resolution and removing legal barriers to reporting OTC derivatives to trade repositories and to authorities access to that data.

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
SLI goes live on Calastone’s settlement service
23 November 2017 | London | Reporter: Jenna Lomax
Standard Life was added to the solution following its £11 billion merger with Aberdeen Asset Management, which was completed in March this year
BNP Paribas hires new Hong Kong head
23 November 2017 | Hong Kong | Reporter: Jenna Lomax
Kasparian will be responsible for developing relationships with new and existing clients, as well as delivering best-in-class operations and services
Monyx selects RBC I&TS to manage SICAV umbrella
23 November 2017 | Luxembourg | Reporter: Jenna Lomax
RBC I&TS will provide custody, fund administration, transfer agency, securities lending and foreign exchange services to Monyx
Societe Generale boosts ESG reporting
22 November 2017 | Paris | Reporter: Jenna Lomax
The new solution allows institutional investors and asset managers to rate their investments against ESG indicators
Tobam launches bitcoin mutual fund
22 November 2017 | Paris | Reporter: Jenna Lomax
The fund will allow investors access to cryptocurrency to benefit from Tobam’s research and IT systems to track the value of investing in bitcoin
Strate adopts Nasdaq blockchain solution for voting
22 November 2017 | Stockholm | Reporter: Becky Butcher
Nasdaq is set to provide its blockchain electronic voting solution to South African Central Securities Depository (CSD) Strate
UniCredit launches instant payment solution
22 November 2017 | Milan | Reporter: Becky Butcher
UniCredit has launched its cross-border instant payments solution in Italy and Germany
More news