Global Governance and Policy Coherence : Before and After the G20 Summit

Transcription

1 Glbal Gvernance and Plicy Cherence : Befre and After the G20 Summit Annex I Tasks assigned t internatinal rganizatins by the G20 Leaders (infrmal summary - Based n the 2 April 2009 Lndn texts) The G20 Leaders agree T meet again befre the end f this year t review prgress n ur cmmitments. 1 T instruct ur Finance Ministers t cmplete the implementatin f these decisins in line with the timetable set ut in the Actin Plan and (...) [have] the next meeting f ur Finance Ministers in Sctland in Nvember. 1 [T have] ur Finance Ministers t [cmplete] a reprt mnitring the Actin Plan frm the FSB and the IMF (...) wrking with the Financial Actin Taskfrce and ther relevant bdies. 1 [T ask] the Chairman, wrking with the G20 Finance Ministers, t cnsult widely in an inclusive prcess and reprt back t the next meeting with prpsals fr further refrms t imprve the respnsiveness and adaptability f the IFIs. 1 Fr the new FSB, [the G20] agree t establish a new Financial Stability Bard (FSB) with a strengthened mandate, as a successr t the Financial Stability Frum (FSF), including all G20 cuntries, FSF members, Spain, and the Eurpean Cmmissin; 1 that the FSB shuld cllabrate with the IMF t prvide early warning f macrecnmic and financial risks and the actins needed t address them; 1 and 2 Institute fr Envirnmental Security : Glbal Plicy Cherence 2009 page 1

2 t endrse and implement the FSF s tugh new principles n pay and cmpensatin and t supprt sustainable cmpensatin schemes and the crprate scial respnsibility f all firms; 1 t call n the accunting standard setters t wrk urgently with supervisrs and regulatrs t imprve standards n valuatin and prvisining and achieve a single set f high-quality glbal accunting standards; 1 t extend regulatry versight and registratin t Credit Rating Agencies t ensure they meet the internatinal cde f gd practice, particularly t prevent unacceptable cnflicts f interest; 1 t ask the FSB and the IMF t mnitr prgress [n the timetable set ut in the Actin Plan] wrking with the Financial Actin Taskfrce and ther relevant bdies, and prvide a reprt t the next meeting f (...) Finance Ministers (...) in Nvember; 1 that FSB and the IMF shuld (...) launch an Early Warning Exercise at the 2009 Spring Meetings; 2 t develp a tlbx f measures t prmte adherence t prudential, tax and AML/CFT standards and cperatin with jurisdictins; 2 t call upn the FSB and the FATF t reprt t the next G20 Finance Ministers and Central Bank Gvernrs meeting n adptin and implementatin by cuntries; 2 t assess vulnerabilities affecting the financial system, identify and versee actin needed t address them; 2 t prmte c-rdinatin and infrmatin exchange amng authrities respnsible fr financial stability; 2 t mnitr and advise n market develpments and their implicatins fr regulatry plicy; 2 t advise n and mnitr best practice in meeting regulatry standards; 2 t undertake jint strategic reviews f the plicy develpment wrk f the internatinal Standard Setting Bdies t ensure their wrk is timely, crdinated, fcused n pririties, and addressing gaps; 2 t set guidelines fr, and supprt the establishment, functining f, and participatin in, supervisry clleges, including thrugh nging identificatin f the mst systemically imprtant crss-brder firms; 2 Institute fr Envirnmental Security : Glbal Plicy Cherence 2009 page 2

3 t supprt cntingency planning fr crss-brder crisis management, particularly with respect t systemically imprtant firms; 2 t elabrate and reprt n [FSB member] cmmitments: t enhance the penness and transparency f the financial sectr; and t implement internatinal financial standards (including the 12 key Internatinal Standards and Cdes); and t elabrate and reprt n the [peridic peer reviews, using amng ther evidence IMF / Wrld Bank public Financial Sectr Assessment Prgram ] evaluatin prcess. 2 t call n the FSB t wrk with the BIS and internatinal standard setters t develp macr-prudential tls [acrss the financial system including in the case f regulated banks, shadw banks, and private pls f capital t limit the build up f systemic risk] and prvide a reprt by autumn 2009; 2 t prduce with the IMF guidelines [n regulatry arbitrage] fr natinal authrities t assess whether a financial institutin, market, r an instrument is systemically imprtant by the next meeting f ur Finance Ministers and Central Bank Gvernrs. These guidelines shuld fcus n what institutins d rather than their legal frm; 2 G20 expects the Basel Cmmittee n Banking Supervisin (BCBS) t review minimum levels f capital and develp recmmendatins in 2010; 2 jin the FSB and CGFS, wrking with accunting standard setters, t take frward, with a deadline f end 2009, the implementatin f the recmmendatins published tday t mitigate prcyclicality, including a requirement fr banks t build buffers f resurces in gd times that they can draw dwn when cnditins deterirate; 2 shuld take frward with natinal authrities wrk n imprving incentives fr risk management f securitisatin, including cnsidering due diligence and quantitative retentin requirements, by T take frward its review n the rle f external ratings (if Credit Rating Agencies) in prudential regulatin and determine whether there are any adverse incentives that need t be addressed. 2 Institute fr Envirnmental Security : Glbal Plicy Cherence 2009 page 3

4 Integrate the FSF principles int their risk management guidance by autumn The principles, which have tday been published, require: firms' bards f directrs t play an active rle in the design, peratin, and evaluatin f cmpensatin schemes; cmpensatin arrangements, including bnuses, t prperly reflect risk and the timing and cmpsitin f payments t be sensitive t the time hrizn f risks. Payments shuld nt be finalised ver shrt perids where risks are realised ver lng perids; and 2 firms t publicly disclse clear, cmprehensive, and timely infrmatin abut cmpensatin. Stakehlders, including sharehlders, shuld be adequately infrmed n a timely basis n cmpensatin plicies t exercise effective mnitring. 2 Supervisrs will assess firms cmpensatin plicies as part f their verall assessment f their sundness. Where necessary they will intervene with respnses that can include increased capital requirements. 2 G20 expects the Internatinal Organizatin f Securities Cmmissins (IOSCO) t crdinate full cmpliance with IOSCO Cde f Cnduct Fundamental which natinal regulatry versight regimes are t establish fr all Credit Rating Agencies by G20 expects the BIS Cmmittee n Glbal Financial System (CGFS) In cnjunctin the FSB and BCBS wrking with accunting standard setters, t take frward, with a deadline f end 2009, implementatin f the recmmendatins published tday t mitigate prcyclicality, including a requirement fr banks t build buffers f resurces in gd times that they can draw dwn when cnditins deterirate; 2 Fr the IMF, [the G20] (...) have agreed: nw and in the future, t candid, even-handed, and independent IMF surveillance f ur ecnmies and financial sectrs, f the impact f ur plicies n thers, and f risks facing the glbal ecnmy; t increase the resurces available t the IMF thrugh immediate financing frm members f $250 billin, subsequently incrprated int an expanded and mre flexible New Arrangements t Brrw, increased by up t $500 billin, and t cnsider market brrwing if necessary; 1 and 2 Institute fr Envirnmental Security : Glbal Plicy Cherence 2009 page 4

5 t welcme (...) the prgress made by the IMF with its new Flexible Credit Line (FCL) and its refrmed lending and cnditinality framewrk which will enable the IMF t ensure that its facilities address effectively the underlying causes f cuntries balance f payments financing needs, particularly the withdrawal f external capital flws t the banking and crprate sectrs. We supprt Mexic s decisin t seek an FCL arrangement. 1 and 2 T supprt a general SDR allcatin which will inject $250 billin int the wrld ecnmy and increase glbal liquidity, and urgent ratificatin f the Furth Amendment. 1 and 2 T implement the package f IMF quta and vice refrms agreed in April 2008 and call n the IMF t cmplete the next review f qutas by January 2011; 1 t [cnsider] (...) greater invlvement f the Fund s Gvernrs in prviding strategic directin t the IMF and increasing its accuntability; 1 that the heads and senir leadership f the internatinal financial institutins shuld be appinted thrugh an pen, transparent, and merit-based selectin prcess. 1 T cmmit, cnsistent with the new incme mdel, that additinal resurces frm agreed sales f IMF gld will be used, tgether with surplus incme, t prvide $6 billin additinal cncessinal and flexible finance fr the prest cuntries ver the next 2 t 3 years. We call n the IMF t cme frward with cncrete prpsals at the Spring Meetings; 1 and 2 agreed t review the flexibility f the Debt Sustainability Framewrk and call n the IMF and Wrld Bank t reprt t the IMFC and Develpment Cmmittee at the Annual Meetings; 1 t duble IMF s cncessinal lending capacity fr lw incme cuntries and duble access limits, within the Debt Sustainability Framewrk (DSF); 2 That IMF and FSB shuld (...) launch an Early Warning Exercise at the 2009 Spring Meetings. 2 T [accelerate] the next quta review t be cmpleted by January 2011 t ensure the IMF s finances are n a sustainable fting cmmensurate with the needs f the internatinal mnetary system; 2 t take[ing] steps t ensure that its surveillance and lending facilities address effectively the underlying causes f cuntries balance f payments financing needs, particularly the withdrawal f external capital flws t the banking and crprate sectrs; 2 t ask the IMF and the FSB t mnitr prgress [n the timetable set ut in the Actin Plan] wrking with the Financial Actin Taskfrce and ther relevant bdies, and prvide a reprt t the next meeting f (...) Finance Ministers (...) in Nvember. 1 Institute fr Envirnmental Security : Glbal Plicy Cherence 2009 page 5

6 T be a member new FSB as it was f the ld FSF. T prduce with the FSB guidelines [n regulatry arbitrage] fr natinal authrities t assess whether a financial institutin, market, r an instrument is systemically imprtant by the next meeting f ur Finance Ministers and Central Bank Gvernrs. These guidelines shuld fcus n what institutins d rather than their legal frm; 2 t cme frward with cncrete prpsals at the Spring Meetings fr the $6 billin additinal cncessinal and flexible finance fr the prest cuntries ver the next tw t three years. 3 shuld take steps t ensure that its surveillance and lending facilities address effectively the underlying causes f cuntries balance f payments financing needs, particularly the withdrawal f external capital flws t the banking and crprate sectrs. 3 Fr the Multilateral Develpment Banks (MDBs), the G20 have agreed t supprt: a substantial increase in lending f $100 billin including t lw incme cuntries, t a ttal f arund $300 billin ver the next three years; 1 and 2 [the] availability f at least $250 billin ver the next tw years t supprt trade finance thrugh ur exprt credit and investment agencies and thrugh the MDBs. 1 full and exceptinal use f MDB balance sheets, t create further capacity fr lending t meet crisis needs; 2 a 200 per cent general capital increase at the Asian Develpment Bank and reviews f the need fr capital increases at the Inter-American Develpment Bank, the African Develpment Bank and the Eurpean Bank fr Recnstructin and Develpment; 2 actins by the MDBs t leverage private capital mre effectively, including thrugh the use f guarantees, bnd insurance and bridging finance; 2 the new IFC Glbal Trade Liquidity Pl which shuld prvide up t $50 billin f trade liquidity supprt ver the next three years, with significant c-financing frm the private sectr (as part f the glbal effrt t ensure the availability f at least $250 billin f trade finance ver the next tw years). In rder t reach this bjective, we agreed t prvide $3-4 billin in vluntary bilateral cntributins t the IFC Pl. We als welcmed the steps taken by ther MDBs t increase supprt fr trade finance, and medium and lng-term prject finance thrugh ur exprt credit and investment agencies. 2 Nt t be a member f the new FSB Institute fr Envirnmental Security : Glbal Plicy Cherence 2009 page 6

7 Fr the Wrld Bank Grup (WBG), the G20 have agreed t supprt: (...) implementing the Wrld Bank refrms agreed in Octber We lk frward t further recmmendatins, at the next meetings, n vice and representatin refrms n an accelerated timescale, t be agreed by the 2010 Spring Meetings; 1 (...) [the appintment f] the heads and senir leadership f the internatinal financial institutins (...) thrugh an pen, transparent, and merit-based selectin prcess; 1 thrugh vluntary bilateral cntributins, the Wrld Bank Vulnerability Framewrk, including the Infrastructure Crisis Facility and the Rapid Scial Respnse Fund; 1 and 2 individual cuntry limits n Wrld Bank lending shuld be increased, as apprpriate, t enable large cuntries t access required levels f finance and s supprt stability and recvery in their regins; 2 lw incme IDA cuntries with sustainable debt psitins and sund plicies shuld be given temprary access t nn-cncessinal IBRD lending t cmpensate fr the lss f access t capital markets, and IDA resurces shuld be frnt laded, using the existing flexibility in the DSF; 2 t be a member new FSB as it was f the ld FSF. G20 calls n the WTO: tgether with ther internatinal bdies, within their respective mandates, t mnitr and reprt publicly n ur adherence t these undertakings 1 n a quarterly basis; [t receive prmpt ntificatins] f any such measures. T be a member new FSB as it was f the ld FSF. We remain cmmitted t reaching an ambitius and balanced cnclusin t the Dha Develpment Rund, which is urgently needed. This culd bst the glbal ecnmy by at least $150 billin per annum. T achieve this we are cmmitted t building n the prgress already made, including with regard t mdalities. 1 1 Reference fr.. we reaffirm the cmmitment made in Washingtn: t refrain frm raising new barriers t investment r t trade in gds and services, impsing new exprt restrictins, r implementing Wrld Trade Organisatin (WTO) incnsistent measures t stimulate exprts. In additin we will rectify prmptly any such measures. We extend this pledge t the end f 2010; we will minimize any negative impact n trade and investment f ur dmestic plicy actins including fiscal plicy and actin in supprt f the financial sectr. We will nt retreat int financial prtectinism, particularly measures that cnstrain wrldwide capital flws, especially t develping cuntries; Institute fr Envirnmental Security : Glbal Plicy Cherence 2009 page 7

8 G20 ntes that the OECD has tday published a list f cuntries assessed by the Glbal Frum against the internatinal standard fr exchange f tax infrmatin; 1 is a member f the ld FSF and the new FSB. G20 expects the OECD Financial Actin Task Frce n Mney Laundering (FATF) t revise and reinvigrate the review prcess fr assessing cmpliance by jurisdictins with AML/CFT standards, using agreed evaluatin reprts where available. 2 t reprt with the FSB t the next G20 Finance Ministers and Central Bank Gvernrs meeting n adptin and implementatin by cuntries. 2 G20 calls n the UN [t wrk] with ther glbal institutins, t establish an effective mechanism t mnitr the impact f the crisis n the prest and mst vulnerable. 1 and 2 Nt t be a member f the new FSB G20 calls upn the ILO [t wrk] with ther relevant rganisatins, t assess the actins taken and thse required fr the future. 2 Nt t be a member f the new FSB G20 and the UNFCCC We reaffirm ur cmmitment t address the threat f irreversible climate change, based n the principle f cmmn but differentiated respnsibilities, and t reach agreement at the UN Climate Change cnference in Cpenhagen in December Nt t be a member f the new FSB 2 Reference fr assessment f actins taken and thse required fr the future: We cmmit t supprt thse affected by the crisis by creating emplyment pprtunities and thrugh incme supprt measures. We will build a fair and familyfriendly labur market fr bth wmen and men. We therefre welcme the reprts f the Lndn Jbs Cnference and the Rme Scial Summit and the key principles they prpsed. We will supprt emplyment by stimulating grwth, investing in educatin and training, and thrugh active labur market plicies, fcusing n the mst vulnerable. Institute fr Envirnmental Security : Glbal Plicy Cherence 2009 page 8

9 Unknwn frum G20 supprts discussin n such a charter fr sustainable ecnmic activity with a view t further discussin at ur next meeting. We take nte f the wrk started in ther fra in this regard and lk frward t further discussin f this charter fr sustainable ecnmic activity. 1. Leaders Statement : The Glbal Plan fr Recvery and Refrm, 2 April 2009, Lndn, Declaratin n strengthening the financial system, 2 April 2009, Lndn Dcuments/Fin_Deps_Fin_Reg_Annex_020409_-_1615_final.pdf 3. Declaratin n delivering resurces thrugh the internatinal financial institutins, 2 April 2009, Lndn, _Clean.pdf Institute fr Envirnmental Security : Glbal Plicy Cherence 2009 page 9

10 Annex II Original terms f reference fr the G20 strategy fr glbal recvery We cmmit t implementing plicies cnsistent with the fllwing cmmn principles fr refrm. Strengthening Transparency and Accuntability: We will strengthen financial market transparency, including by enhancing required disclsure n cmplex financial prducts and ensuring cmplete and accurate disclsure by firms f their financial cnditins. Incentives shuld be aligned t avid excessive risk-taking. Enhancing Sund Regulatin: We pledge t strengthen ur regulatry regimes, prudential versight, and risk management, and ensure that all financial markets, prducts and participants are regulated r subject t versight, as apprpriate t their circumstances. We will exercise strng versight ver credit rating agencies, cnsistent with the agreed and strengthened internatinal cde f cnduct. We will als make regulatry regimes mre effective ver the ecnmic cycle, while ensuring that regulatin is efficient, des nt stifle innvatin, and encurages expanded trade in financial prducts and services. We cmmit t transparent assessments f ur natinal regulatry systems. Prmting Integrity in Financial Markets: We cmmit t prtect the integrity f the wrld s financial markets by blstering investr and cnsumer prtectin, aviding cnflicts f interest, preventing illegal market manipulatin, fraudulent activities and abuse, and prtecting against illicit finance risks arising frm nn-cperative jurisdictins. We will als prmte infrmatin sharing, including with respect t jurisdictins that have yet t cmmit t internatinal standards with respect t bank secrecy and transparency. Reinfrcing Internatinal Cperatin: We call upn ur natinal and reginal regulatrs t frmulate their regulatins and ther measures in a cnsistent manner. Regulatrs shuld enhance their crdinatin and cperatin acrss all segments f financial markets, including with respect t crss-brder capital flws. Regulatrs and ther relevant authrities as a matter f pririty shuld strengthen cperatin n crisis preventin, management, and reslutin. Refrming Internatinal Financial Institutins: We are cmmitted t advancing the refrm f the Brettn Wds Institutins s that they can mre adequately reflect changing ecnmic weights in the wrld ecnmy in rder t increase their legitimacy and effectiveness. In this respect, emerging and develping ecnmies, including the prest cuntries, shuld have greater vice and representatin. The Financial Stability Frum (FSF) must expand urgently t a brader membership f emerging ecnmies, and ther majr standard setting bdies shuld prmptly review their membership. The IMF, in cllabratin with the expanded FSF and ther bdies, shuld wrk t better identify vulnerabilities, anticipate ptential stresses, and act swiftly t play a key rle in crisis respnse. DECLARATION,SUMMIT ON FINANCIAL MARKETS AND THE WORLD ECONOMY, Nvember 15, 2008, Washingtn Institute fr Envirnmental Security : Glbal Plicy Cherence 2009 page 10