While 2017 has seen several welcome and encouraging signals of continued commitment to international regulatory processes, concerns of fragmentation still persist. While the US Treasury reports have helped to signal the continuation of active US involvement in international regulatory fora, the ring-fencing and trapping of capital and liquidity across jurisdictions is a growing concern, while the pending finalization of Basel III will quickly lead to implementation conjecture.

International standard setters and regulations have helped to support capital flows, encourage competition, enable efficiencies, and promote stability. It is important that this continue, as the undermining or unraveling of international consistency would come at a considerable cost to the effectiveness of the regulatory framework and the functioning of markets.

In building on our March 2017 paper "˜International Regulatory Standards: Vital for Economic Growth', this new paper encourages standard setters to embrace the focus on dynamic implementation and efficient resilience, underpinned by comprehensive analysis of the impacts of regulations. Concurrently, international standard setters are urged to focus on a renewed mandate, and continue proactive reforms to improve transparency. Such actions will help to ensure they can maintain and build on the legacy of their considerable achievements.