GPFI Subgroup on Regulation and Standard-Setting Bodies (SSBs): Terms of Reference

Transcription

1 GPFI Subgrup n Regulatin and Standard-Setting Bdies (SSBs): Terms f Reference 1. Backgrund Backgrund / ratinale There is a grwing understanding f the interdependence f financial inclusin, financial stability, financial integrity, and financial cnsumer prtectin. Cuntry-level plicy makers and glbal standardsetting bdies (SSBs) are increasingly cmmitted t the pursuit f all fur cre plicy bjectives. The pursuit f all fur cre plicy bjectives is encuraged by the G20, the GPFI and its members and Implementing Partners, as well as the United Natins and the Internatinal Mnetary Fund (IMF). In this cntext, the subject f financial inclusin is increasingly integrated within the wrk and thinking f the SSBs, underscring the intercnnectins with their cre cncerns t prtect the stability and the integrity f financial systems and the interests f financial cnsumers, as well as t cnsider the risks f financial exclusin. The changing landscape f innvative digital financial services infrms nging wrk by the SSBs and ther glbal bdies t integrate financial inclusin bjectives int standards and guidance that can be applied effectively at the cuntry level. Financial inclusin, and digital financial inclusin in particular, trigger an ever-increasing vlume f issues f relevance t multiple SSBs. In this cntext, SSBs need t crdinate and cllabrate in rder t give cherent guidance fr cuntry-level plicy making. Subgrup s areas f fcus The Subgrup fcuses n tw actin areas under the 2017 Financial Inclusin Actin Plan (2017 FIAP) (detailed belw): (1) mainstreaming financial inclusin in the wrk f SSBs and ther relevant glbal bdies; and (2) encuragement f effective and cnsistent incrpratin f financial inclusin in financial sectr assessments. Key achievements ver the past years Under the 2014 G20 FIAP, the GPFI released the GPFI White Paper n Glbal Standard-Setting Bdies and Financial Inclusin: The Evlving Landscape (2016) and rganized with the Financial Stability Institute (FSI) in Basel tw GPFI-FSI cnferences n SSBs and financial inclusin (2014 and 2016). Furthermre, the Subgrup supprted individual SSBs in develping and disseminating financial inclusin-related utputs. The Subgrup wrk has cntributed substantially t the advancements made glbally in the recgnitin f financial inclusin as a plicy gal alngside financial stability, financial integrity, and financial cnsumer prtectin, ntably within the cmmunity f glbal SSBs. SSBs have made significant prgress in addressing financial inclusin in the cntext f their respective mandates, stretching their thinking and taking cncrete steps via integratin f financial inclusin cnsideratins (including as a primary fcus) in publicatins, wrkstreams, and guidance papers. Frm an initial limited set f activities, there nw exists brad and deep wrk acrss the seven financial sectr SSBs f greatest relevance t financial inclusin. 1 1 Financial Stability Bard, Basel Cmmittee n Banking Supervisin, Cmmittee n Payments and Market Infrastructures, Internatinal Assciatin f Depsit Insurers, Internatinal Assciatin f Insurance Supervisrs, and the Internatinal Organizatin f Securities Cmmissins. The wrk has t a lesser extent included the Internatinal Financial Cnsumer Prtectin Organisatin, the Internatinal Telecmmunicatins Unin and the Internatinal Standards Organizatin. 1

2 Wrk that still needs t be dne FinTech develpments and their effect n brader financial sectr develpment, including their cntributin (psitive r negative) t the linked gals f financial inclusin, financial stability, financial integrity, and financial cnsumer prtectin, call fr nging engagement t help psitin SSBs and cuntry-level plicy makers t keep pace. The SSBs cnfrnt, and will cntinue t cnfrnt, a grwing range f crsscutting issues n which crdinatin and cllabratin amng them is required t harmnize the develpment and applicatin f their standards and guidance. This calls fr further jint wrk amng the SSBs n issues f relevance t multiple SSBs t help cuntries balance the ptentially cmpeting plicy bjectives intrduced by a brad financial inclusin agenda. What we want t achieve in the next 3-5 years. The Subgrup will cntinue t prgress twards greater wnership by the SSBs f financial inclusin, evlving and frmalizing ver time the way in which the GPFI wrks with the SSBs (secretariats, leadership, and members f the SSBs) and the FSI, within the Bank fr Internatinal Settlements (BIS). The GPFI trika and ther member cuntries will cntribute t this prcess. Frmalizing the way in which the Subgrup wrks with the SSBs will g hand-in-hand with supprt fr financial inclusin-related activities in the wrk f the SSBs: crsscutting themes in the wrk f multiple SSBs f relevance t financial inclusin, but als the relevant wrk f individual SSBs. The establishment f an SSB-wned standing platfrm t pursue jint wrk addressing crsscutting issues f relevance t financial inclusin in the wrk f multiple SSBs and ther glbal bdies, upn the call frm the G20 Leaders, remains an ultimate gal. 2 The Subgrup will als encurage the further develpment and adptin f assessment methdlgies and ther tls fr financial sectr assessments that reflect increased understanding f the interdependence f financial inclusin, stability, integrity, and cnsumer prtectin, taking nte f financial sectr assessment reprts and research findings that reflect increased understanding f financial inclusin by assessrs and cntributing t standardizatin f appraches taken t the tpic f financial inclusin in assessment reprts. Yearly wrk prgrams will take int accunt the financial inclusin pririties f the G20 Presidency cuntry and will als remain attentive t the crsscutting issues identified by the GPFI fr the engagement f all Subgrups. 2 An expected result under the 2017 FIAP is prgress twards the establishment f a standing platfrm t pursue jint wrk addressing crss-cutting issues f relevance t financial inclusin in the wrk f multiple SSBs and ther glbal bdies, as framed in the 2016 GPFI White Paper. 2

3 2. Scpe f Wrk 2.1. Gal and Actin Areas f the Subgrup The Regulatin and SSBs Subgrup fcuses n: (1) the mainstreaming f financial inclusin in the wrk f the SSBs and ther relevant glbal bdies and increasing understanding f the interdependence f financial inclusin, stability, integrity, and cnsumer prtectin; and (2) effective and cnsistent incrpratin f financial inclusin in financial sectr assessments. The Subgrup n Regulatin and SSBs fcuses n tw actin areas under the 2017 FIAP: Mainstream financial inclusin in the wrk f the glbal financial standard-setting bdies (SSBs) and ther relevant glbal bdies, while enhancing crdinatin and cllabratin amng them and increasing understanding f the interdependence f financial inclusin, stability, integrity, and cnsumer prtectin. Encurage effective and cnsistent incrpratin f financial inclusin in financial sectr assessments: cntributing t the further develpment f methdlgies and ther tls emplyed in financial sectr assessments; increasing understanding f financial inclusin by fi nancial sectr assessrs; and prmting better understanding f the lessns learned by natinal authrities underging assessments n implementatin f glbal standards and guidance. 3 FIAP Actin Area 3: Mainstream financial inclusin in the wrk f the glbal financial standard-setting bdies (SSBs) and ther relevant Organizatin f biennial GPFI-FSI SSB cnferences (2018 and 2020) in equal partnership with FSI (including FSI-led plicy research analysis and pssible preparatin f ne r mre issues papers cntributing t the framing f Cnference themes) and with due attentin t current G20 Presidency s financial inclusin pririties Set f relevant takeaways that arise frm the Octber 2018 and 2020 Cnferences. Activities/publicatins with regard t financial inclusin plicymaking (f glbal bdies and natinal entities) shw evidence f being infrmed by analysis f financial inclusin, stability, integrity, and cnsumer prtectin linkages. 3 The wrk f the Subgrups, articulated in annual wrk plans based n this Subgrup Terms f Reference, is mnitred annually. Results f this annual mnitring cntribute t the GPFI annual prgress reprts. A deeper stck-taking is dne at the time f preparatin f a new G20 FIAP. 3

4 glbal bdies while enhancing crdinatin and cllabratin amng them and increasing understanding f the Encuragement and supprt fr financial inclusin relevant activities acrss the SSBs, cntributin t analysis and harmnized treatment f crsscutting issues acrss multiple SSBs (particularly thse crsscutting issues identified as pririties by the current G20 President) Relevant takeaways frm activities bringing tgether multiple SSBs that integrate financial inclusin cnsideratins interdependence f financial inclusin, stability, integrity and cnsumer prtectin. Encuragement and supprt fr SSB/glbal bdy-specific activities f relevance t financial inclusin Evidence f advancement f relevant activities invlving single SSBs/ther glbal bdies (such as the wrk f the Basel Cnsultative Grup) Review f standards and guidance t take stck f integratin f financial inclusin cnsideratins acrss SSBs, via use f tracking table and analysis f infrmatin prvided therein Encurage cncrete steps twards greater wnership f financial inclusin within the grup f SSBs engaged already in incrprating the gal f financial inclusin in their wrk, explring further ptins fr cllabratin amng the SSBs n financial inclusin. Semi-annual updates t tracking table f SSB activities; analysis f this infrmatin t identify trends and areas f cmmn interest amng SSBs; preparatin f a cndensed versin f the tracking table suitable fr disseminatin beynd the grup f SSBs active in this stck-taking prcess Semi-annual GPFI SSBs Check-in Meetings, fcusing n identifying pprtunities fr jint wrk amng SSBs; advancement in crdinating and implementing such jint wrk within the BIS Evidence shwed increasing integratin f financial inclusin int the standards and guidance f glbal SSBs. Prgress was made twards the establishment f a standing platfrm t pursue jint wrk addressing crsscutting issues f relevance t financial inclusin in the wrk f multiple SSBs and ther glbal bdies, as framed in the 2016 GPFI White Paper (link t GPFI crsscutting issues). 4

5 Increased SSB participatin in jint activities f relevance t financial inclusin, public supprt viced by SSB leadership, G20, UNSGSA and/r ther relevant actrs ; subject matter n which t fcus will be identified jintly with the SSBs, taking int cnsideratin pririties f the current G20 Presidency, in additi n t thse established by the SSBs Examples f SSB activities that reflect SSB pririties as well as G20 Presidency pririties; examples f public supprt viced by SSB leadership, G20, UNSGSA and/r ther relevant actrs; SSB participatin in GPFI-related activities Jint activities by SSBs that cntribute t the understanding f the interdependence f financial inclusin, stability, integrity, and cnsumer prtectin Jint analysis f crsscutting issues related t financial inclusin f relevance t multiple SSBs, including with regard t the recmmendatins f the 2016 GPFI White Paper (e.g. applicatin f the cncept f prprtinality) Frmulatin f plans and taking cncrete initial steps t prgress twards a standing SSB platfrm n financial inclusin, cmmencing with increased engagement by the SSBs in planning and crdinatin f jint activities Degree f advancement in cncrete steps taken by the SSBs t take n planning and crdinatin, with the supprt f the GPFI 5

6 Increased number f SSB events and activities with private sectr participatin; increased number f cuntries invlving private sectr fr feedback and cnsultatin n relevant plicy making prcesses related t financial inclusin Encuragement fr the incrpratin f emerging market and develping ecnmies (EMDE) perspectives in SSB papers and in specific activities f SSBs (cmmittees, wrking grups, events) Relevant takeaways frm events and activities with private sectr participatin; specific events: private sectr participatin in biennial cnferences, SSBs wrkstreams f relevance t financial inclusin that bring in private sectr representatives (e.g. frums rganized arund crrespndent banking/derisking issues; financial integrity issues) Meaningful examples f the incrpratin f EMDEs in SSB activities and events Engagement with the private sectr was expanded t better infrm and prvide input n develpment f standards and guidance and t prmte enabling and prtective financial inclusin plicies at the cuntry level (link t GPFI crsscutting issue 2: cllabratin acrss sectrs/private sectr). The SSBs and the GPFI encuraged and prmted active participatin f emerging market and develping ecnmies in utreach activities f SSBs (SDG 10.5). 6

7 FIAP Actin Area 4: Encurage, supprt and/r cntribute t reviews and/r Undertaking f such reviews The GPFI, SSBs, and ther relevant glbal analyses 4 f the incrpratin f financial inclusin and/r analyses by the bdies cntributed t the further develpment cnsideratins in financial sectr assessment institutin(s) in questin; and adptin f assessment methdlgies methdlgies and tls 5 and f the increased tracking, and analyses f and ther tls that reflect increased understanding f interdependence f inclusin, stability, findings f such f reviews understanding f interdependence f integrity, and cnsumer prtectin and/r analyses by the inclusin, stability, integrity, and cnsumer institutin(s) in questin r prtectin (link t SDG 10.5). ther parties Encurage effective and cnsistent incrpratin f financial inclusin in financial sectr assessments: cntributing t the further develpment f methdlgies and ther tls emplyed in financial sectr assessments; increasing understanding f financial inclusin by financial sectr assessrs; and prmting better understanding f the lessns learned by natinal authrities underging assessments n implementatin f glbal standards and guidance. Encurage, supprt and/r cntribute t reviews and/r analyses f publicly available financial sectr assessment reprts acrss the SSBs and FSAPs and Article IV cnsultatin reprts The GPFI, SSBs, r ther relevant glbal bdies tracked and tk nte f financial sectr assessment reprts and findings that reflect increased understanding f financial inclusin by assessrs, cntributing t standardizing the apprach taken t the tpic f financial inclusin in assessment reprts (link t SDG 10.5). Encurage, supprt and/r cntribute t reviews and/r analyses f the cnsideratin given in financial sectr assessments acrss the SSBs and FSAPs t financial service needs f underserved/vulnerable grups and relevant barriers theret (see abve) Evidence that cnsideratin was given in such reviews and/r analyses t financial service needs f underserved/ vulnerable grups and relevant barriers theret Cnsideratin was given in financial sectr assessments t financial service needs f underserved/vulnerable grups and regulatry barriers t the expansin f financial services t vulnerable grups (e.g. Financial Sectr Assessment Prgram analyses and reprts) (links t SDG 8.5 and GPFI crsscutting issue 4: underserved/vulnerable grups). Events/activities rganized by the GPFI, its members Evidence f increased The GPFI, its members and Implementing 4 Thrughut these Terms f Reference where there is reference t reviews and/r analyses, it is recgnized that sme types f reviews and/r analyses can nly be cnducted practically by the bdies carrying ut the type f assessment in questin (r the SSBs r ther bdies, the standar ds and guidance f which are addressed in the assessment); althugh in sme cases there may be pprtunities fr public input n reprts frm such reviews and/r analyses released as cnsultative dcuments. 5 The phrase assessment methdlgies and tls, frm the 2017 FIAP, encmpasses bth frmal guidance fr assessrs (such as FATF s 2013 Methdlgy fr Assessing Technical Cmpliance with the FATF Recmmendatins and the Effectiveness f AML/CFT Systems), and less frmal guidance (and even ptentially nn-public guidance, if the parties invlved are willing t cntribute t the review in questin r t grant access t thers wh can perfrm the review), such as the guidance nte n financial inclusin develped fr Wrld Bank/IMF Financial Sectr Assessments (FSAPs). 7

8 and/r Implementing Partners and Affiliated Partners that prmte dialgue between industry and plicymakers n prprtinate regulatin and supervisin t enable respnsible innvatin dialgue thrugh reprts f events and activities Partners prvided supprt fr dialgue between industry and plicymakers n prprtinate regulatin and supervisin in rder t enable respnsible innvatin (link t crsscutting issue 2: cllabratin acrss sectrs/private sectr). Encuragement f assessments that measure results f cuntry-level financial inclusin plicies and regulatin, t increase capacity Evidence f such participatin thrugh assessment reprts (t the extent publicly available) Capacity fr measuring results f cuntry-level financial inclusin plicies and regulatin was increased (SDG 8.10). The Subgrup n Regulatin and SSBs supprts, in the area f regulatin and standard-setting, the verarching actins f the GPFI under the 2017 G20 FIAP, including the annual pririties under the G20 Presidency and the wrk f ther GPFI Subgrups relating t regulatin, supervisin, and/r standard setting The Subgrup s cntributin t the Crsscutting Issues f the GPFI GPFI s crsscutting issues Expected cntributin by Subgrup 1) Enable innvatin t increase digitizatin Prmtin f glbal standards and guidance that enable respnsible innvatin t increase digitizatin 2) Engagement with the private sectr Encuragement f private sectr participatin t prvide feedback and cnsultatins, if any, in specific events f the SSBs and ther glbal bdies, as well as thse f cuntry-level plicy makers 3) Achieve data harmnizatin (N Subgrup cntributin is currently freseen) 4) Target underserved and vulnerable grups Cntributin t a better understanding f regulatry and supervisry barriers t reaching underserved and vulnerable grups; Encurage peer-t-peer learning amng plicy makers t learn frm best practices acrss varius plicy makers 5) Advance wmen s ecnmic empwerment Cntributin t a better understanding f barriers t wmen s ecnmic empwerment, specifically with regard t the rle (psitive and negative) f legal, regulatry and supervisry framewrks 2.3. The Subgrup s cntributin t the fur Principles f the 2030 Agenda fr Sustainable Develpment Addressing the 2030 Agenda s Sustainable Develpment Principles 1) Balancing the scial, ecnmic, and envirnmental dimensins f sustainable develpment Expected cntributin by Subgrup Embedding f financial inclusin in the wrk f SSBs; imprving understanding f the interdependence f financial inclusin, stability, integrity, and cnsumer prtectin, as well as links t inclusive ecnmic grwth 8

9 Addressing the 2030 Agenda s Sustainable Expected cntributin by Subgrup Develpment Principles 2) Universality Expansin f fcus f SSBs t EMDEs; prmtin f wrkstreams and dcuments that address the financial inclusin cncerns f EMDEs 3) Integrated and crss-sectral financial inclusin Prmtin f SSB standards and guidance that facilitate integrated and crss -sectral financial inclusin appraches and activities appraches and activities 4) Transfrmative multi-stakehlder partnerships Prmtin f increasing jint wnership f financial inclusin by the SSBs, culminating in the establishment f an SSBs standing platfrm n financial inclusin 9

10 3. Membership 6 The participants in the Subgrup n Regulatin and SSBs include Member Cuntries, participating nn- G20 cuntries, Implementing Partners, and an Affiliated Partner, as defined in the GPFI TRs. The current C-chairs are India, Indnesia, and United Kingdm. Other Member cuntries currently participating in the Subgrup s wrk include Argentina, Australia, Germany, Mexic, Russian Federatin, and United States. The nn-g20 cuntries currently participating in the Subgrup s wrk are Peru and Philippines. The Subgrup C-Chairs are cmmitted t maximizing the invlvement f Subgrup members in supprt f carrying ut the activities under these Terms f Reference, leveraging the wrk f its members, Implementing Partners, and Affiliated Partner(s) with due cnsideratin t prcedures laid ut in the GPFI Terms f Reference. Implementing Partners are Alliance fr Financial Inclusin (AFI), Better Than Cash Alliance (BTCA), Cnsultative Grup t Assist the Pr (CGAP), Internatinal Finance Crpratin (IFC), Wrld Bank Grup (WBG) and the Affiliated Partner is Access t Insurance Initiative (A2ii). New members, including nn-g20 cuntries, are welcme. In additin, the Subgrup benefits frm the supprt f, and supprts, Her Majesty Queen Máxima f the Netherlands, the UN Secretary General s Special Advcate fr Inclusive Finance fr Develpment (UNSGSA) and Hnrary Patrn f the GPFI. 4. Cmmunicatin and Reprting All apprved Subgrup publicatins accrding t sectin 5 f the GPFI Terms f Reference and ther dcuments are disseminated thrugh as are thse materials frm Subgrup gatherings that are intended fr public cnsumptin. At the same time, the Subgrup als recgnizes that issues arise in its wrk that benefit frm clse-dr discussin pursuant t the Chatham Huse rule. The Subgrup is respnsible fr prducing annual wrk plans and annual prgress reprts t the Leaders, and reviews f the TRs/FIAP, fllwing the prcesses defined by the GPFI Terms f Reference. 5. Outputs and Timeline The specific utputs f the Subgrup, and when utputs will be achieved, will be set ut in the Subgrup s annual wrk plan at the beginning f each year. 6 Membership cnditins are described i n Sectin 2 (verall membership) and Sectin 3.5 (Subgrup membership) f the GPFI Terms f Reference. 10