Financial Regulatory Forum

FACTBOX-Global regulators seek to plug supervision gaps

Jan 8 (Reuters) – A forum of global financial regulators put forward 17 recommendations on Friday covering supervision of hedge funds, credit derivatives and mortgages in a bid to plug supervisory gaps highlighted by the financial crisis.

The G20 group of countries, which is spearheading reform of financial regulation at the global level, asked the forum last November to come up with recommendations.

Policymakers saw flaws in how supervisors of securities, insurers and banks worked together, with some firms able to exploit gaps. The recommendations comprise a marked shift in the parameters of regulation and supervision.

Some of the recommendations are already being acted on, such as forcing hedge fund managers to register and report to supervisors, and increasing transparency and central clearing of credit derivatives.

For report from the Basel Committee on Banking Supervision, the International Organisation of Securities Commissions and the International Association of Insurance Supervisors click on

Mortgages targeted in global supervision crackdown

By Huw Jones

LONDON, Jan 8 (Reuters) – Mortgage lenders must check better if borrowers can repay home loans, a global forum of regulators said on Friday in a wide-ranging report aimed at plugging regulatory gaps uncovered by the credit crunch.

The worst financial crisis since the Great Depression began in 2007 with defaults in U.S. home loans which, via securitisation, rippled across the world to harm the economy and force governments to use trillions of taxpayer dollars to shore up banks.

The G20 group of countries is spearheading global efforts to toughen up financial regulation and apply lessons from the crisis.

G20 tries to roll back moral hazard in banks

An office worker leaves an Australia and New Zealand Bank mortgage centre in central Sydney September 1, 2009.   By Huw Jones
ST ANDREWS, Scotland, Nov 6 (Reuters) – Finance ministers from the world’s big economies launch difficult discussions this weekend on how to deal with banks whose failure could destabilise economies. Any blueprint is likely to take many months to thrash out.

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ANALYSIS-US, EU urged to find common ground on systemic risk

By Huw Jones and Rachelle Younglai
LONDON/WASHINGTON, Oct 30 (Reuters) – The United States and Europe are moving at different speeds down possibly divergent paths toward dealing with troubled multinational financial giants, despite promises of transatlantic coordination.

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Global enforcement body may be needed for banking sector – UK regulator

By Huw Jones
LONDON, Oct 14 (Reuters) – A global body with legal powers may be needed over time to enforce the world’s new financial rules, Britain’s Financial Services Authority (FSA) said on Wednesday.

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INTERVIEW – Britain’s FSA seeks to shape regulatory debate

By Huw Jones
BASEL, Switzerland, Oct 8 (Reuters) – The UK’s Financial Services Authority hopes its rapid introduction of tougher liquidity rules for banks will help speed up and shape global rulemaking, its new international director said.

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Reuters Summit-Private bankers fret over cost of new rules

REYL & Cie SA Chief Executive Officer Franois Reyl gestures during the Reuters Global Wealth Management Summit in Geneva October 7, 2009.  REUTERS/Denis Balibouse (SWITZERLAND BUSINESS HEADSHOT) By Ian Simpson
GENEVA, Oct 7 (Reuters) – Private bankers face higher costs as a wave of regulation forces them to spend on infrastructure and more staff, executives told the Reuters Wealth Management Summit.

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ANALYST VIEWS: G20 ends reign of G7 in Pittsburgh

U.S. President Barack Obama leaves a news conference at the end of the G20 Summit in Pittsburgh, Pennsylvania September 25, 2009. REUTERS/Jim Young (UNITED STATES POLITICS BUSINESS) PITTSBURGH (Reuters) – Group of 20 leaders on Friday designated themselves as the new forum for steering the world economy, ending the long reign of the G7 as the preeminent committee for guiding global growth:

The G20 leaders said their representatives would report back to them at the next meeting “on how to maximize the effectiveness of our cooperation”, and agreed to have a G20 summit in Canada in June 2010 and in Korea in November.
Meetings thereafter will probably be held annually, and France will be the host in 2011.

Following is a selection of analyst reactions:

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EU to support stimulus, push on trade talks at G20

Jean-Pierre Jouyet, head of French market watchdog AMF, is seen in this file photo taken May 18, 2007. REUTERS/Benoit Tessier (FRANCE) By Jan Strupczewski
BRUSSELS, Sept 16 (Reuters) – The European Union will support maintaining policies that poured trillions of dollars into economies and call on a G20 meeting for progress on trade talks to help boost a recovery, a draft policy document said.

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G20 heads for crackdown on bank bonuses

By Huw Jones and Anna Willard
PARIS, Sept 15 (Reuters) – Banks with low levels of capital will not be able to offer large bonuses under guidelines the G20 is set to discuss this month, the Financial Stability Board said on Tuesday.

“It’s important that firms conserve profits so they can rebuild capital and support lending,” FSB Chairman Mario Draghi told a news conference.

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