Global Financial Regulation: The Emerging Landscape

The Chatham House City Series

15 October 2009 00:00 to 16 October 2009 00:00

Chatham House, London



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Audience profile

'Global Financial Regulation: The Emerging Landscape' will look at the future of the global regulatory system and its impact on the international financial services industry.

The future of the financial regulatory system

The global financial system is moving towards a post-crisis state; governments and regulators worldwide are working to contain the fallout, whilst simultaneously thinking about a new regulatory framework to deal with future crises. Regulatory reform proposals have been put forward by the three leading financial regulatory jurisdictions: the United States, the European Union and the United Kingdom. What type of regulatory system will emerge?

  • What will be the role of international bodies such as the International Monetary Fund, Financial Stability Board and European Systemic Risk Council?
  • What will be the role of national regulators? How can cooperation and coordination among regulators be achieved?
  • Will the expansion of regulatory powers at home and abroad entangle global financial institutions in a web of regulations and supervisors, interfering with the provision of global financial services?
  • How will the financial industry adjust to the new system?

This conference will be held under the Chatham House Rule. Information for journalists >>

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9.30 am
Session One
Regulatory Reform

  • Do the proposed regulatory reforms, as outlined in the Turner Review and the Treasury White Paper, the de Larosière Report and the Obama White Paper, adequately address the causes of the current financial crisis?
  • To what degree can market discipline and the self-correcting nature of markets be counted on to ensure that future crises are prevented? Has the financial crisis caused the regulatory pendulum to swing too far towards the direction of over-regulation? What dangers could this pose?
  • Should financial institutions that are deemed systemically important be subject to special regulation or obligations?
  • In order to be effective, regulators must have enough resources, powers to collect information, expertise and enforcement capabilities. Do the proposed reforms provide regulators with all the tools they need?

Dr Paola Subacchi
Director, International Economic Research
Chatham House

Keynote Addresses
Paul Myners CBE
Financial Services Secretary
HM Treasury, UK

Jacques de Larosière
High-Level Expert Group on EU Financial Supervision

Hector Sants
Chief Executive Officer
Financial Services Authority, UK

Questions and discussion

11.05 Refreshments

Marcus Agius
Barclays Group

Simon M Lorne
Vice Chairman and Chief Legal Officer, Millennium Partners
Former General Counsel, US Securities and Exchange Commission

Randal Quarles
Managing Director, Washington Branch, The Carlyle Group

Questions and discussion

12.50 Lunch

Session Two
The Challenge of Regulatory Cooperation and Coordination

  • What will be the new powers of international bodies such as the Financial Stability Board, the IMF and the European Systemic Risk Council? To what extent will those bodies still have to rely on national regulators to carry out their objectives? How will these bodies ensure that national regulators in order to respond in a timely and appropriate manner?
  • There are calls for the creation of a global systemic risk regulator. Who should adopt this role? What would this body have to do to be successful?
  • Host countries may now demand greater regulatory authority over cross-border financial institutions. Will these demands interfere with the provision of global financial services?
  • How will regulatory coordination take place? Are formal, legal mechanisms or informal contact groups preferable? Will all countries be invited to join these bodies or will only certain jurisdictions have representatives?

Professor Eric Pan
Director, The Samuel and Ronnie Heyman Center on Corporate Governance
Benjamin N. Cardozo School of Law, New York
Associate Fellow, International Economic Research, Chatham House

Stephen Cecchetti
Economic Adviser
Bank for International Settlements

David Wright
Deputy Director General, Internal Market
European Commission

Moderated panel discussion

Stephen Cecchetti

David Wright

Barbara Ridpath
International Centre for Financial Regulation

Nicolas Véron
Research Fellow

15.10 Refreshments

Session Three
Extending the regulators' reach

  • Should hedge funds and other investment vehicles be subject to regulation? If so, what should be the nature of the regulation (e.g. disclosure, registration, supervision, capital adequacy)?
  • It is inevitable that those jurisdictions that provide lighter regulation (including account and transaction secrecy and tax advantages) will be attractive to various financial institutions? Is it acceptable for jurisdictions to treat light regulation as a competitive advantage? To what extent should the European Union and United States prevent this from happening?
  • What impact will the new regulatory regime have on the structure and activities of the financial sector?
  • Should regulators require financial firms and corporations to put into place risk management and enterprise risk management controls? How can we ensure that boards of directors more actively monitor officers and employees? Can risk management standards be coordinated at the international level?
  • To what extent should regulators place restrictions on the amount and form of compensation received by senior executive officers? Will salary and bonus restrictions mean that firms will have trouble attracting talented, high-quality individuals? Should compensation restrictions also apply to private firms, especially hedge funds and private equity funds?

Vanessa Rossi
Senior Fellow, International Economic Research
Chatham House

Creighton Condon
Shearman & Sterling

Moderated panel discussion

Barney Reynolds
Shearman & Sterling

Simon M Lorne
Vice Chairman and Chief Legal Officer, Millennium Partners
Former General Counsel, US Securities and Exchange Commission

Thomas Deinet
Executive Director
Hedge Fund Working Group

Dr Urs Zulauf
Member of the Executive Board and Head of Strategic and Central Services
Swiss Financial Market Supervisory Authority

16.45 Reception hosted by Shearman and Sterling

© The Royal Institute of International Affairs 2009

This City Series conference will offer a unique opportunity to network with senior officials from businesses, government and academic institutions.

Our previous City Series conference 'Global Financial Regulation: The Fallout from the Financial Crisis' in March 2009 saw delegates from the following companies and institutions:

Aegis Defence Services
Allen & Overy LLP
Association of British Insurers
Association of Chartered Certified Accountants
Aviva Plc
Banca d'Italia
Banco Mercantil
Bank for International Settlements
Bank of Canada
Bank of Japan
Barclays Capital
Beachcroft LLP
BNP Paribas
Booz & Co
British Bankers' Association
Canadian High Commission
Capital Market Authority
Center for International Studies and Consultancy
City of London Corporation
Clifford Chance LLP
Commonwealth Secretariat
Deloitte LLP
Department for International Development
European Investment Bank
Financial Services Law Association
Foreign and Commonwealth Office
Freshfields Bruckhaus Deringer
Goldman Sachs International
Government Communications Headquarters
Hague Institute for the Internationalisation of Law
Herbert Smith LLP
HM Treasury
Institute of Development Studies
Lloyd's of London
London School of Economics
London South Bank University
Mayer Brown
McKinsey & Company
Mitsubishi Corporation
Morgan Stanley International Limited
Nomura International
Nomura Research Institute Europe Limited
Outer Temple Chambers
Oxera Consulting Ltd
Presidency of the Ministerial Council
Representation of the Faroes
Reserve Bank of Australia
Royal Bank of Scotland
Slaughter and May
Spanish Embassy
Standard & Poor's
Standard Chartered Bank plc
Sumitomo Mitsui Banking Corporation
Swiss Agency for Development and Cooperation SDC
Taipei Representative Office
The Alternative Investment Management Association Ltd
The Association of Corporate Treasurers
The State Pension Fund
Trades Union Congress
White & Case LLP
Wolters Kluwer Financial Services