On 29 September 2023, HM Treasury published a joint statement from the US Department of the Treasury and HM Treasury following the eighth official Financial Regulatory Working Group (FRWG) meeting held on Wednesday 6 September.

The statement outlines the key themes discussed at the meeting and some of the key outcomes. They include the following:

  • Key themes discussed included the economic and financial stability outlook, international banking issues, developments in the non-bank sector, climate-related financial risks and sustainable finance, international engagement, and digital finance.
  • The meeting opened with a broad discussion of the UK and US economic and financial stability outlook, with participants taking stock of current economic trends and market conditions and considering broader global factors.
  • On banking issues, participants offered an overview of developments in their domestic banking systems. Discussions were held on each jurisdiction’s banking regulation, including resolution-related updates, with participants discussing the importance of implementing reforms consistent with Basel III, and of ongoing dialogue among international partners when implementing these reforms.
  • There was a discussion of developments in non-bank financial intermediation (NBFI) and the importance and urgency of fostering resilience in the NBFI sector. Participants exchanged views on national money-market fund reforms and NBFI work being taken forward by the Financial Stability Board (FSB) and international standard setting bodies, such as the FSB’s upcoming workstream to address vulnerabilities from leverage in the NBFI sector. 
  • Participants held conversations on climate-related financial risks and sustainable finance in line with their respective mandates.  Representatives noted progress in this area, including the publication of the International Sustainability Standards Board’s (ISSB) final standards as well as the International Organization of Securities Commission’s (IOSCO) endorsement of those standards, which called on IOSCO’s members to consider ways in which they might adopt, apply or otherwise be informed by the ISSB standards within the context of their jurisdictional arrangements. 
  • Participants shared views on issues related to digital assets and other areas of digital finance.  Representatives offered updates on recent developments in cryptoasset markets and avenues for future work and international engagement in the space. Participants agreed on the importance of effective regulation and oversight of cryptoassets and markets and reiterated their support for the international work on cryptoassets and stablecoins through the FSB and international standard setting bodies.

The working group has agreed to reconvene in 2024, while noting the importance of continued open dialogue on shared priorities.