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The Australian Financial Markets Association, the Investment Industry Association of Canada, the Japan Securities Dealers Association, the London Investment Banking Association, and the Securities Industry and Financial Markets Association (the “Associations”) released a statement today in advance of the inaugural meeting of the Financial Stability Board (“FSB”):
“We welcome the establishment of the Financial Stability Board, strongly support its objectives, and look forward to the outcome of its first meeting on 26th June.
“The FSB’s work of facilitating the harmonization and understanding of regulatory reforms and standards across jurisdictions around the world will have a vital importance for participants in financial markets, and for economic recovery more generally.
“It is critical that the FSB and its members ensure that such reforms are developed and implemented in a manner that promotes open markets and the free flow of capital.
“The FSB’s mandate to promote global coordination and consistency is central to ensuring a well functioning financial market in which systemic risk is better understood and controlled. We urge the FSB and its members to work together to ensure that global regulatory efforts reflect international best practices and promote coordination and cooperation among regulators. We are concerned that some recent regional and national regulatory proposals diverge in ways that could create distortions or other barriers in the global marketplace: in these instances, we encourage the FSB to foster, in line with the G-20 mandate, the necessary changes to develop consistency with a well-founded global policy approach.
“In light of the FSB’s expanded mandate and the more direct impact of its work on market participants, we encourage the FSB to ensure that global policy development is well informed by impact analysis and based on a transparent process and increased dialogue with market participants on policy development, ensuring reasonable time for comment and discussion. Such dialogue and analysis is important to ensure that standard-setting serves public policy needs, commands authority and ensures buy-in, thereby improving both compliance and enforcement.”
