This latest report by the International Regulatory Strategy Group (IRSG), launched today, calls on global stakeholders to reaffirm their commitment to regulatory coherence to support a digital and green pandemic economic recovery.
'Global Solutions to Global Problems: Promoting Regulatory Coherence in Financial Services for Pandemic Recovery' suggests that by making a renewed commitment to regulatory coherence, policymakers will support progress on challenges to future economic growth, such as climate change, cyber-crime and financial crime.
Data referenced in the report suggests that regulatory fragmentation in the financial services sector consumes 5-10% of annual global turnover.*
City of London Corporation Policy Chair, Catherine McGuinness said:
This timely report highlights how global regulatory coherence will be vital to our attempt to build back better.
The common challenges we face across the globe call for a common approach as we rebuild after the pandemic and combat climate change. Fragmentation however ultimately leads to increased costs for customers and reduced choice. Instead we need cross-border regulatory collaboration in order to support a digital and sustainable economic recovery.
Global policymakers should adhere to the principles set out in this report as an essential means of unlocking future growth.
* - According to International Federation of Accountants & OECD BIAC, Regulatory Divergence: Costs, Risks and Impacts, February 2018.