On 9 November the Financial Stability Board, chaired by Mark Carney, Governor of the Bank of England, published its first annual report to the G20 on the Implementation and effects of the G20 financial regulatory reforms.

In the report the FSB identified three key areas that merit close ongoing attention and potential responsive measures, the areas were:

  • spill-overs on some emerging market and developing economies from the implementation of reforms in home jurisdictions of global financial institutions;
  • the maintenance of an open and integrated global financial system in the aftermath of the financial crisis; and
  • the causes and financial stability consequences of recent shifts in liquidity in fixed income markets.

As a result, the FSB will be working with standard-setters in all three areas to analyse and, where necessary, will also be focusing on the following initiatives in regards to overcoming the legal and other challenges stemming from regulatory reforms:

  • Putting in place legal powers to enable resolution authorities to share information across borders and to be able to give prompt effect to resolution actions by foreign authorities;
  • Promoting cooperation to address duplicative or overlapping requirements to cross- border OTC derivatives transactions;
  • Removing legal barriers to the reporting of OTC derivatives transactions to trade repositories and permitting authorities’ access to trade repository data; and
  • Ensuring that national authorities are adequately resourced for full and timely implementation of reforms as well as for supporting their effective monitoring.

For further information on the FSB, its studies and its initiatives please visit the FSB website on this link.

Should you require any further advice or information on the above, Cleveland & Co, your external in-house counsel, are here to help.