International Financial International Financial ArchitectureArchitecture

John C. SloanJohn C. SloanSpecial AdviserSpecial Adviser

International Strategy and Policy International Strategy and Policy CoordinationCoordination

Financial Services AuthorityFinancial Services Authority

Joint ForumCGFS

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 ForumJoint Forum

1993 – 1995 1993 – 1995 Tripartite GroupTripartite Group– workable definition of a conglomerateworkable definition of a conglomerate

1995 – to date1995 – to date Joint ForumJoint Forum– established by Basel, IOSCO & IAISestablished by Basel, IOSCO & IAIS– regulators from banking, securities & regulators from banking, securities &

insuranceinsurance– 13 countries13 countries– Chair rotates between Basel, IOSCO & IAIS Chair rotates between Basel, IOSCO & IAIS

Joint ForumJoint Forum

Original mandate focussed specifically on Original mandate focussed specifically on financial conglomeratesfinancial conglomerates

Mandate later broadened to look at issues Mandate later broadened to look at issues of common interest across all three of common interest across all three sectorssectors

Undertakes work at request of 3 sectoral Undertakes work at request of 3 sectoral committees and, more recently, FSF committees and, more recently, FSF

Joint Forum Work Streams (I)Joint Forum Work Streams (I)

Capital Adequacy of ConglomeratesCapital Adequacy of Conglomerates

Supervisory Gaps and Overlaps of Supervisory Gaps and Overlaps of ConglomeratesConglomerates

Intra-group Transactions & ExposuresIntra-group Transactions & Exposures

Risk ConcentrationsRisk Concentrations

Risk Management and Capital RegulationRisk Management and Capital Regulation

Comparison of Core PrinciplesComparison of Core Principles

Joint Forum Work Streams (II)Joint Forum Work Streams (II)

Risk Integration and AggregationRisk Integration and Aggregation Operational Risk TransferOperational Risk Transfer Enhanced DisclosureEnhanced Disclosure Credit Risk TransferCredit Risk Transfer Outsourcing PrinciplesOutsourcing Principles Mapping Regulatory DifferencesMapping Regulatory Differences Liquidity ManagementLiquidity Management High-level Business Continuity PrinciplesHigh-level Business Continuity Principles

Question 1Question 1

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

Question 2Question 2

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

Question 3Question 3

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

Question 4 Question 4

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

Question 5Question 5

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

International Financial International Financial ArchitectureArchitecture

John C. SloanJohn C. SloanSpecial AdviserSpecial Adviser

International Strategy and Policy International Strategy and Policy CoordinationCoordination

Financial Services AuthorityFinancial Services Authority