Exclusive Online Only ContentSIFMA in Joint Call for Study of 'Aggregate Impact' of Worldwide Financial Reforms
November 6, 2009
The Securities Industry and Financial Markets Association and its counterparts in Europe and Asia Friday called for a coordinated study of the “aggregate impact” of regulatory and legislative reforms being pursued by different countries around the world.
The call comes on the eve of meetings in St. Andrews, Scotland, of the finance ministers of the 20 leading industrial nations, known as the G20 and its newly created Financial Stability Board, established to promote international financial stability through improved information exchange and international cooperation.
Attempts to fix the world’s financial systems to prevent a replay of last fall’s seize-up of capital markets has “resulted in an unprecedented level and range of regulatory and legislative initiatives,’’ SIFMA, the newly formed Association for Financial Markets in Europe and the Asia Securities Industry and Financial Markets Association said in a joint statement.
“Before this list of new requirements is implemented, it is critical that we understand their aggregate impact on global economic growth,’’ the three financial industry associations said. “While individually each initiative may have merit – and the Associations’ support many of the reforms – it is also vital to check that, taken together, these reforms do not negatively impact investors, capital flows, economic growth, or job creation during a period of global economic vulnerability.''
The three groups also said they “welcome the commitment to consultation” in the creation of a charter for the Financial Stability Board. Part of that means “ensuring reasonable time for comment and discussion, and to advance proposals that are well informed by impact analysis,’’ the groups said.
