Basel iii Compliance Professionals Association (BiiiCPA)www.basel-iii-association.com
Additionally, the Joint Forum notes that global policy initiatives aimed atreducing the impact of future crises are resulting in increased prudentialrequirements on regulated entities.Paradoxically, these concerted efforts could result in an undesired effect,that is, providing incentives to operate outside the traditional boundariesof supervision and regulation for the three sectors.MandateAt their 15 November 2008 meeting,the G-20 Leaders called for a review of the differentiated nature and scope of regulation in the banking,securities, and insurance sectors.This report responds to the following declaration:
“The appropriate bodies should review the differentiated nature of
regulation in the banking, securities, and insurance sectors and provide areport outlining the issue and making recommendations on neededimprovements.A review of the scope of financial regulation, with a special emphasis oninstitutions, instruments, and markets that are currently unregulated,along with ensuring that all systemically-importantinstitutions are appropri
ately regulated, should also be undertaken.”
In its 25 March 2009 report on Enhancing Sound Regulation andStrengthening Transparency, the G-20 stated the following:
“The Joint Forum, a Working Group of the BCBS, IOSCO and the IAIS,
is undertaking a project that addresses the differentiated nature andscope of financial regulation.The main objective of this project is to identify areas where systemic risksmay not be fully captured in the current regulatory framework.