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European Financial Services Round Table

Friday, June 15, 2018
EFR paper on transatlantic relations and global regulatory issues

The European Financial Services Round Table (EFR), comprised of Chairmen and Chief Executive Officers of international banks and insurers, with operations across the globe, have businesses and customers in markets across different continents. There are benefits of being an international financial group including diversification, access to talent, ability to leverage scale, capabilities and resources, international reputation and exposure to global thinking, as such creating value for all stakeholders.

Whereas the United States and Europe have worked closely together for many years through international forums, one can now observe diverging statements on global standards and new financial regulations. This is highly relevant for global financial groups as represented by the EFR.

Both banks and insurers have extensive experience with global financial regulation and support global standards – both macro-prudential policy measures and, albeit at different stages, capital standards.

The enclosed EFR paper is related to transatlantic relations and global regulatory issues. The EFR believes that especially the following considerations merit further discussion:

  • Regulatory cooperation at global level is vital. Internationally operating financial groups benefit from global standards providing added value to their customers through efficiency gains and increased competition as a result of an international level playing field.
  • While finance has become increasingly globalised over the past four decades, financial firms need to take into account local aspects of the markets they operate in, particularly in the case of retail banking and insurance. Global standard setters and national authorities implementing these standards should be mindful of that when introducing conduct as well as prudential standards proportionally.
  • Elected representatives have an important role to play in weighing the advantages of global standards against local market characteristics, and in building and defending the legitimacy of regulatory frameworks.