Washington D.C., June 5, 2013 - The Institute of International Finance today released a report encouraging national and global policymakers to promote greater consistency between national regulations. The report reviews current consistency efforts underway and contains sixteen specific recommendations for action.

The report, Promoting Greater International Regulatory Consistency , responds to mounting concern in both the financial services industry and regulatory community that the determination to achieve global cooperation and coordination is waning, with jurisdictions tempted towards exceptions and purely national approaches-despite considerable efforts since the financial crisis to agree on and implement international standards.

Tim Adams, the President and CEO of the IIF, said "There is ample evidence that jurisdictions around the world are adopting differing approaches to implementation of G20 commitments, be it on Basel III, derivatives or accounting standards. We know that regulators are just as concerned with these multiple implementation approaches as we are, will continue working on the issues, and are open to new solutions for consistency across borders."

"We support regulators' efforts and the broad direction of the financial reforms proposed since the start of the financial crisis. Therefore, we have developed sixteen practical recommendations for action through all stages of the regulatory cycle from policy initiation to regulatory implementation, and supervisory cooperation."

Recommendations the IIF proposes for the system as a whole include:

• Policy Development:When contemplating regulation ¹ , national regulators should consider and consult with each other and international standard setters on whether an international approach would be beneficial, feasible, and timely. Even if they agree to take national approaches alone, they should coordinate the timing of their regulatory processes as much as possible and mitigate any extraterritorial impacts.


• Regulatory Implementation:In situations where regulators identify fundamental problems that they believe need to be addressed through limited exceptions, they should alert the FSB or relevant international standard setter to discuss these exceptions with a view towards reaching a common view on how to proceed. International standard setters should promote and commit to the goal of mutual recognition between jurisdictions.


• Cross-Border Supervision:Supervisors should move beyond information-sharing in colleges and towards using them to ensure that decisions are understood and coordinated across supervisors, and consistent insofar as possible.


• General:The FSB should carry out a review of the organization of international regulatory work and the membership and resources of international standard setters.

Mr. Andrew Procter, Global Head, Compliance, Government & Regulatory Affairs at Deutsche Bank, chair of the IIF working group that produced the paper, said "These are important issues. Despite their difficulty, if we do not resolve them successfully, the consequences will impact not just financial institutions but companies, investors and the global economy. The current financial and regulatory environment makes the need for international cooperation and consistency even greater than before, with policymakers acting unilaterally only when absolutely necessary."

"Our recommendations are a combination of short, medium and long-term measures. At their core is the idea that national regulators should have a much greater international instinct when initiating or implementing regulation rather than opting for ex post coordination. While some of our recommendations may seem ambitious, we believe they are what is needed to adjust to the emerging reality of the global financial system."

Tim Adams added, "We are putting these ideas forward in a constructive way. International regulatory consistency is a shared responsibility of policy makers and the industry and the Institute looks forward to engaging policymakers in a robust dialogue on these important issues."




^[1]Subject to a materiality test or threshold