International Financial Architecture John C. Sloan Special Adviser International Strategy and Policy Coordination Financial Services Authority

Joint Forum CGFS Financial Stability Forum G-20 (Fin. Mins.) OECD (Gov’ts) IMF/WB (Gov’ts) FATF (Money laundering) IAIS (Insurance) BCBS (Banking) IOSCO (Securities ) G-10 (Central Banks) WTO G-7 (Gov’ts) Bank for Int’l Settlements (Central Banks) CPSS Global Committee Structure (a Regulator’s View) IASB Direct Relationship Indirect Relationship ---- Other accounting bodies (IFAC. PIOB, etc.)

Joint Forum 1993 – 1995 Tripartite Group 1993 – 1995 Tripartite Group – workable definition of a conglomerate 1995 – to dateJoint Forum 1995 – to dateJoint Forum – established by Basel, IOSCO & IAIS – regulators from banking, securities & insurance – 13 countries – Chair rotates between Basel, IOSCO & IAIS

Joint Forum Original mandate focussed specifically on financial conglomerates Original mandate focussed specifically on financial conglomerates Mandate later broadened to look at issues of common interest across all three sectors Mandate later broadened to look at issues of common interest across all three sectors Undertakes work at request of 3 sectoral committees and, more recently, FSF Undertakes work at request of 3 sectoral committees and, more recently, FSF

Joint Forum Work Streams (I) Capital Adequacy of Conglomerates Capital Adequacy of Conglomerates Supervisory Gaps and Overlaps of Conglomerates Supervisory Gaps and Overlaps of Conglomerates Intra-group Transactions & Exposures Intra-group Transactions & Exposures Risk Concentrations Risk Concentrations Risk Management and Capital Regulation Risk Management and Capital Regulation Comparison of Core Principles Comparison of Core Principles

Joint Forum Work Streams (II) Risk Integration and Aggregation Risk Integration and Aggregation Operational Risk Transfer Operational Risk Transfer Enhanced Disclosure Enhanced Disclosure Credit Risk Transfer Credit Risk Transfer Outsourcing Principles Outsourcing Principles Mapping Regulatory Differences Mapping Regulatory Differences Liquidity Management Liquidity Management High-level Business Continuity Principles High-level Business Continuity Principles

Question 1 Given recent consolidation in the global financial system, how do we ensure regulatory consistency across all three sectors? Given recent consolidation in the global financial system, how do we ensure regulatory consistency across all three sectors?

Question 2 How do we recognise and eliminate inconsistencies to contribute to a more efficient global financial system and avoid unnecessary regulatory arbitrage? How do we recognise and eliminate inconsistencies to contribute to a more efficient global financial system and avoid unnecessary regulatory arbitrage?

Question 3 How regulators and the standard setters take best advantage of the accumulated wisdom being collected as a spin-off from the IMF/WB FSAP and ROSC assessments? How regulators and the standard setters take best advantage of the accumulated wisdom being collected as a spin-off from the IMF/WB FSAP and ROSC assessments?

Question 4 How do we ensure that the process of drafting, approving and implementing codes and standards for the global financial sector contributes most effectively to financial stability and sustainable economic growth? How do we ensure that the process of drafting, approving and implementing codes and standards for the global financial sector contributes most effectively to financial stability and sustainable economic growth?

Question 5 As regulators, can we afford not to think as conglomerates? As regulators, can we afford not to think as conglomerates?

International Financial Architecture John C. Sloan Special Adviser International Strategy and Policy Coordination Financial Services Authority