Global Harmonization Appears at the Forefront of Regulatory Activity

In the wake of the economic crisis, government and regulatory agencies have been focused on finding ways to curb systemic risk by improving transparency and accountability. New legislation that supports these efforts is being developed globally with the G20, Asia and in North America.

Harmonization is a theme that resonates with the G20. In fact, they created the Financial Stability Board (FSB) to monitor the isolated efforts of each member country to ensure alignment wherever possible. The U.S.-based Dodd-Frank Wall Street Reform and Consumer Protection Act is similar in nature to legislation that already exists or is in process in other countries. Signed in 2010, the Dodd-Frank Act strives to do the following:

• Establish a robust regulatory framework for the derivative marketplace
• Enhance market transparency
• Create a lower barrier to entry and a more competitive landscape
• Mitigate systemic risk to the market

It’s clear that no country wants to repeat the missteps of the past. And because each geographical market is so intrinsically linked to one another, there is a renewed sense of collaboration whenever possible to safeguard the future of the global financial market.

We follow government and regulatory efforts closely to understand the latest issues and areas of focus and immediately translate them into concrete directives our clients can use to improve their business.