The G20 finance ministers and central bank governors met in Sydney and have issued a communiqué confirming that they will be focusing their efforts on substantially completing the following four core reforms:
- building resilient financial institutions;
- ending too-big-to-fail;
- addressing shadow banking risks; and
- making derivatives markets safer.
The communiqué confirms their commitments to cooperate across jurisdictions with a renewed focus on timely and consistent implementation supported by meaningful peer reviews, including forover-the-counter derivatives reform. They agreed that jurisdictions and
regulators should be able to defer to each other when justified by the quality of their respective regulatory and enforcement regimes, based on similar outcomes, in a non-discriminatory way, paying due respect to home country regulatory regimes. This approach
had been advocated by the chair of the Financial Stability Board which also encouraged the approach of enhanced co-operation to avoid domestic measures that fragment the global system.