The European Commission has published the keynote introductory remarks given by Michel Barnier (Member of the European Commission, responsible for Internal Market and Services) at the Eurofi Financial Forum.
At the beginning of his remarks Mr Barnier notes that today, the objectives of global convergence and deference to other jurisdictions are broadly shared and that the EU legislative framework to implement the G20 commitments is broadly in place with the concept of third country equivalence enshrined in it. However, Mr Barnier also notes that implementation needs to be delivered so that the rules can be applied in a consistent and coherent way.
Mr Barnier then mentions in his remarks the following five key challenges where the cross border angle needs to be taken into account:
- derivatives. Mr Barnier states that the Commission is now in near daily discussions with the US Commodities Futures Trading Commission;
- bank resolution. Whilst noting that the Financial Stability Board’s work on loss absorbency is an important element more needs to be done to achieve a true cooperation framework for cross border resolution;
- securitisation. Common global standards are needed for sound and simple securitisations;
- international financial reporting standards. Mr Barnier warns that the prospects that these standards will be used by all major jurisdictions are even dimmer today than in the past years; and
- global insurance. Mr Barnier states that there is a need to converge regulation and supervision of the global insurance sector. Initially, and most importantly, by addressing the issue of reinsurance collateral.
View The challenge of implementing market regulations consistently at the global level, 12 September 2014