The Chairman of the Financial Stability Board (FSB), Dr Mark Carney, has written to the G20 Finance Ministers and Central Bank Governors providing an update on financial reforms. The letter summarises the progress so far in completing the programme of reform
for the G20 Brisbane summit (which will take place in November), looks ahead to plans for implementation beyond Brisbane and summarises the initial findings of an FSB review of the representation of jurisdictions on the FSB.
The priorities for completing reforms by the Brisbane summit are:
- ending too big to fail: including gone-concern loss-absorbing capacity, cross-border resolution actions and other measures;
- transforming shadow banking; and
- making derivatives markets safer.
In respect of making derivatives markets safer he indicated that the following would be published ahead of the Brisbane Summit:
- In May – a report on approaches to aggregating and sharing derivatives data amongst authorities. It is crucial that the data becomes available under the new trade repository rules to regulators to monitor financial stability;
- In September – a report on established processes in each jurisdiction to enable deferral to the OTC derivative rules of others where these achieve similar outcomes; and
- In September and November - further reports from the OTC Derivatives Regulators Group on identified cross-border implementation issues.