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P a g e | 1 Inter n atio na l A s s oci a t ion of R isk a nd Co mpl i a n c e Pr o f e s s io na l s ( I A RCP) 12 0 0 G St re e t N W Su i t e 8 0 0 W a s h i ng t o n, D C 2 000 5 - 67 0 5 U SA T e l : 2 0 2 - 44 9 - 9750 www .ri s k - c ompl i ance-a ss o c i a tion . c om.

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  1. P age |1 InternationalAssociationofRiskandComplianceProfessionals(IARCP) 1200GStreet NWSuite800Washington,DC20005-6705USATel:202-449-9750www.risk-compliance-association.com Top10riskandcompliancemanagementrelatednewsstoriesandworldeventsthat(forbetterorforworse)shapedthe week'sagenda,andwhatisnext DearMember, EverytimeIreadthatbanks muststart‘ring-fencing’theirretailoperationssothattheywillbeabletofailwithoutendangeringdepositors,Irememberthecoldwar,especiallytheBerlinwall. Yes,Iamanoldman(bornin1959).Yes,Iamfeelingwell. No,thereis“nodoubtastotheperson’sstateofmind”(atthetimeofwritingthisnewsletter). First,wereadabouttheneedforafenceinbanking. TheIndependentCommissiononBankinginUKhastheopinionthat:“consideringformsofretailring-fencingunderwhichretailbankingoperationswouldbecarriedoutbyaseparatesubsidiarywithinawidergroup.” TheBerlinwallstartedwithafencetoo. Then,wereadthatthisfenceinbankingmustbeelectrified… TheChairmanoftheUKParliamentaryCommissiononBankingStandards,AndrewTyrieMP,hassaid: “TheGovernmentaskedustolookatoneofitsmainproposalsforincreasingfinancialstability– ring-fencing– aspartofourwork. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  2. P age |2 TheCommissionwelcomesthecreationofaring-fence.It can, inprinciple,contributeto theGovernment’sobjectivesofmakingthebankingsystemmoresecure. Itisessentialthatbanksarerestructuredinawaythatallowsthemtofail,whether insideoroutsidethering-fence. Ring-fencingcanalsohelp addressthedamagedonetocultureandstandardsinbanking. Buttheproposals,astheystand,fallwellshortofwhatisrequired.Overtime,thering-fencewillbetestedandchallengedbythebanks. Politicians,too,couldsuccumb to lobbyingfrombanks andothers,addingtopressuretoputholesinthering-fence. Forthering-fencetosucceed,banksneedtobediscouragedfromgamingtherules.Allhistorytellsustheywilldothisunlessincentivisednotto. That’swhywerecommendelectrification.Thelegislationneedstosetoutareservepowerforseparation;theregulatorneedstoknowhecanuseit.” TheybelievedthesamefortheBerlinwall.Asimplefencewasnotgoodenough.Theyalsorecommendedelectrification. Whatisnextwiththeelectrifiedringfenceinbanking? Iftheyfindthattheelectrifiedringfence“fallswellshortofwhatisrequired”whatisnext? WecanlearnfromtheBerlinwall.TherewasaconstantprocessofexpansionandreinforcementontheEastBerlinside,tocreatewhatgraduallybecameamulti-layered“security”system. 1 2 3 4 5 Concreteslabwall,withorwithoutpipingWiremeshfence ControlstripFloodlights Anti-vehicletrench InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  3. P age |3 Outermostboundaryofmannedarea Borderpatrolroad Wireguidingdogpatrols Signaldevice Observation tower Electrifiedsignalfence Self-firingdevicesandminescouldalsohelp. Ifearthatthebankingconsultantsofthefuturemusthavesomewarexperienceinordertobehired. What about: 2006– 2011:ManagementConsultant 2011– 2013:SoldierofFortune ReadmoreatNumber6below,whereyoucanfindthe“peerreview”of theUK.Weread: Ring-fencing:Ring-fencingwill improvetheresolvabilityofbanksandcreateamoresustainablebankingindustry. Itwillinsulatecorebankingserviceswhose temporarydisruptionwould haveasignificantdirectimpactonthedomesticeconomy– inparticularthetakingofdepositsandtheprovisionofoverdraftfacilitiesandpaymentsservices. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  4. P age |4 Ring-fencingwillalsosupportcontinuityofprovisionofthesevitalcoreservices,evenwherefinancialinstitutionsare introuble,reducingtheperceivedimplicitguaranteethattheGovernmentwillbecompelled tostepintosupportfailingbanksthatareperceivedtobe“toobigtofail”. “Electrification”:TheUKGovernmenthasagreedwiththePCBSthatareservepower to requirebankstodivestcertainoperationsmaybeapowerfuladditionaltooltoguaranteetheindependenceofring-fenced bankswithintheircorporategroup. Thisso-called“electrification”ofthering-fencewillenabletheregulatortosplitindividualbanksifthisisnecessaryto achievethepurposesofring-fencing. Regulators,becareful.BanksneedmoreCommonEquityTier1capital.Theyneedinvestors.Don’tputanelectrifiedringfencebetweeninvestorsandbanks. ReadmoreatNumber6below. Welcome totheTop10list. BestRegards, GeorgeLekatisPresidentoftheIARCP GeneralManager,ComplianceLLC 1200GStreetNWSuite800,WashingtonDC20005,USATel:(202)449-9750 Email:lekatis@risk-compliance-association.com Web:www.risk-compliance-association.comHQ:1220N.MarketStreetSuite804,WilmingtonDE19801,USA Tel:(302)342-8828 InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  5. P age |5 G20LEADERS’DECLARATION “We,theLeadersoftheG20,metinStPetersburgon5-6September2013,unitedby ourcontinuedcommitmenttoworktogethertostrengthentheglobaleconomy. Strengtheninggrowthandcreatingjobsisourtoppriorityandwearefullycommitted to takingdecisiveactions to return to ajob-rich,strong,sustainableandbalancedgrowthpath.” COMMUNICATIONFROMTHECOMMISSIONTOTHECOUNCILANDTHEEUROPEANPARLIAMENT Shadow Banking–AddressingNewSourcesofRiskintheFinancialSector Sincethefinancialcrisisbeganin2007/2008,theEuropeanCommissionhasundertakenthebiggestreformoffinancialserviceseverseeninEurope. Theaimis to restoresustainablehealthandstabilitytothissectorbyaddressingtheshortcomingsandweaknesseshighlightedbythecrisis. G20RoadmapTowardsStrengthenedOversightandRegulationofShadowBanking InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  6. P age |6 Competitionandconductregulation infinancialservices SpeechbyChristopherWoolard,DirectorofPolicy,Risk and Research,theFCA,attheRegulatoryPolicy Institute'sAnnualCompetitionandRegulationConference. GabrielBernardino,ChairmanofEIOPA CreationofasustainableandadequatepensionsystemintheEUandtheroleofEIOPA “Thecreationofan adequate,safeandsustainablepensionssystem isoneofthekeyobjectivesofthe EuropeanUnionandEIOPAiscommittedtocontributebyallmeansto thedevelopmentofsuchasystem. ThepurposeofmytalktodayistodemonstratetherealstepsthatEIOPAhasbeenmakingtoachieveaconsistentrisk-basedsupervisoryregimeforpensionsandalsofor insurancecompaniesintheEuropean Union. IwillfocusonEIOPAadvicetotheEuropeanCommissiononthereviewoftheIORPDirective;ontheoutcomeofthefirstEuropeanQuantitativeImpactStudythatEIOPAconductedaspartofthisadviceandonourfurtherworkingplansin thepensionsarea. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  7. P age |7 PeerReviewoftheUnitedKingdomReviewReport ThemainpurposeofthispeerreviewistoexaminethreetopicsthatarerelevantforfinancialstabilityandimportantfortheUnitedKingdom(UK):macro-prudentialpolicyframework;micro-prudentialsupervisoryapproach;andsupervisionandoversightofcentralcounterparties(CCPs). SEC-NASAAInvestorBulletin MakingSenseofFinancialProfessionaltitles The SecuritiesandExchangeCommission’s(SEC)OfficeofInvestorEducationandAdvocacy andtheNorthAmericanSecuritiesAdministratorsAssociation(NASAA)arejointlyissuingthisInvestorBulletintohelpinvestorsbetterunderstandthetitlesusedbyfinancial professionals. Therequirementsforobtainingandusingthesetitlesvarywidely,fromrigoroustonothingatall. Tousecertaintitles,afinancialprofessionalmayneed topassexams,meet ethicalstandards,haverelevantworkexperience,andundertakecontinuingeducation. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  8. P age |8 InterestingJobDescriptions,Location:GreaterLondon RegulatoryCOREPAnalyst(BASELIII)-6MonthContract RISKOUTLOOK2013 THEFINANCIALMARKETINNORWAY InterestingNumbers “TheNorwegianeconomyisvulnerabletoaweakeningofthetermsoftrade. ManyfirmsarealreadystrugglingwithahighcostlevelandastrongerNorwegiancurrencyinstagnatingmarkets,whilethepetroleumsectorandsubsupplierstothissectorareenjoyingbuoyantearnings.” Financialreportings2012:LifeinsurersagainpoststronggrowthinPillar2 DemandforfullvalueinsurancesolutionsfromprivateSwisslife insurersrosesignificantlyin2012,reflectingtheneedthatenterpriseshaveforsecuritywhenitcomestooccupationalpensionschemes. In 2012,life insurerspostedearningsofCHF8.7billion,ofwhich92.4%wereusedforthebenefitofinsuredpersons,with23%alonebeingappliedtobolsterannuity capital. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  9. P age |9 G20LEADERS’DECLARATION Preamble 1. We,theLeadersoftheG20,metinStPetersburgon5-6September 2013,unitedbyourcontinuedcommitmenttoworktogethertostrengthentheglobaleconomy. 2. Strengtheninggrowthandcreatingjobsisourtoppriorityandwe arefullycommittedtotakingdecisiveactions to return to ajob-rich,strong,sustainableandbalancedgrowthpath. 3. In thefiveyearssincewefirstmet,coordinatedactionbytheG20 hasbeencriticaltotacklingthefinancialcrisisandputtingtheworldeconomyonapathtorecovery. ButourworkisnotyetcompleteandweagreedthatitremainscriticalforG20countriestofocusallourjointeffortsonengineeringadurableexitfromthelongestandmostprotractedcrisisinmodernhistory. Ourmosturgentneedistoincreasethemomentumoftheglobalrecovery,generatehighergrowthandbetterjobs,whilestrengtheningthefoundationsforlong-termgrowthandavoidingpoliciesthatcouldcausetherecovery to falterorpromotegrowthat othercountries’expense. Weunderstandthatsoundandsustainableeconomicgrowthwillbefirmlybasedonincreasedandpredictableinvestments,trustandtransparency,aswellasoneffectiveregulationaspartofthemarketpolicy andpractice. AsLeadersoftheworld’slargesteconomies,weshareresponsibilityforreinforcingtheopenandrules-basedglobaleconomicsystem. Wearecommittedtoworkingcooperativelytoaddresskeyglobaleconomicchallenges: InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  10. P age |10 • Achievingastrongerrecoverywhileensuringfiscalsustainability. • WehavetodayagreedtheSt PetersburgActionPlan,whichsetsoutourstrategiesto achievestrong,sustainableandbalancedgrowth. • Unemploymentandunderemployment,particularly amongyoungpeople. • Weareunitedintheresolvetoachievebetterqualityandmoreproductivejobs. • Coordinatedandintegratedpublicpolicies(macroeconomic,financial,fiscal,education,skillsdevelopment,innovation,employmentandsocialprotection)arekeytoreachthisgoal. • Wetodaycommitted to continueoureffortstosupportinclusivelabourmarkets,withtheexchangeofcountry-specificplansorsetsofactions,developedasappropriateaccordingto ourdifferentconstitutionalcircumstances. • Importanceoflong-termfinancingforinvestment,includingforinfrastructureandSMEstoboosteconomicgrowth,jobcreationand development. • Todayweendorsedtheworkplanthathelpedustoassessfactorsaffectingtheavailabilityand accessibilityoflong-termfinancingforinvestmentandcommitted to identifyandstart to implementasetofcollectiveandcountry-specificmeasuresthattangiblyimproveourdomesticinvestmentenvironments. • Freeandrules-basedtradefosterseconomicopportunities. • WestressthecrucialimportanceofstrongmultilateraltradingsystemandcallonalltheWTOmemberstoshowthenecessaryflexibilityandreachasuccessfuloutcomeinthisyear’smultilateraltradenegotiations. • Weextendourcommitmenttorefrainfromprotectionistmeasuresand aimatenhancingtransparencyintrade,including in regionaltradeagreements. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  11. P age |11 • Cross-bordertaxevasionandavoidanceundermineourpublic • financesandourpeople’strust in thefairnessofthetaxsystem. • Today,weendorsedplanstoaddresstheseproblemsandcommittedtotakesteps to changeourrulestotackletaxavoidance,harmfulpractices,andaggressivetaxplanning. • Wehaveagreedandareimplementingabroadrangeoffinancialreformstoaddressthemajorfaultlinesthat causedthecrisis. • Wearebuildingmoreresilientfinancialinstitutions,makingsubstantialprogresstowardsendingtoo-big-to-fail,increasingtransparencyandmarketintegrity,fillingregulatorygapsandaddressingtherisksfrom shadowbanking. • Wewillpursueourworktobuildasafe,reliablefinancialsystemresponsivetotheneedsofourcitizens. • G20countrieshavearesponsibilitytoensurethatallpeoplehavean • opportunitytogainfromstrong,sustainableandbalancedgrowth. • WeendorsetheStPetersburgDevelopmentOutlooktofocusoureffortsonconcretesteps toimprovefoodsecurity,financialinclusion,infrastructure,humanresourcedevelopmentanddomesticresourcemobilization. • Corruptionimpedessustainableeconomicgrowthandpovertyreduction,threateningfinancialstabilityandeconomyasawhole. • Wewill hold ourselvestoourcommitmenttoimplementtheG20 • Anti-CorruptionActionPlan,combatingdomesticandforeignbribery, tacklingcorruptioninhigh-risksectors,strengthening internationalcooperationandpromotingpublicintegrityandtransparencyin thefightagainstcorruption. • RecognizingtheneedforsustainedandconcertedeffortsweendorsetheStPetersburgStrategicFramework. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  12. P age |12 • Weshareacommoninterestindevelopingcleaner,moreefficient • andreliableenergysupplies,aswellasmoretransparentphysicalandfinancialcommoditymarkets. • Wecommit to enhanceenergycooperation,tomakeenergymarketdatamoreaccurateandavailableandtotakestepstosupportthedevelopmentofcleanerandmoreefficientenergy technologiestoenhancetheefficiencyofmarketsandshift towardsamoresustainableenergyfuture. • Weunderscoreourcommitment toworktogethertoaddressclimatechangeandenvironmentprotection,whichisaglobalproblemthatrequiresaglobalsolution. • Wewillcontinue todevelopcomprehensivegrowthstrategiesto achievestronger,moresustainableandbalancedgrowthinthecontextoffiscalsustainability. • Toomanyofourcitizenshaveyet toparticipateintheeconomicglobalrecoverythatisunderway. • TheG20muststrivenotonlyforstrong,sustainableandbalancedgrowth butalsoforamoreinclusivepatternofgrowththatwillbettermobilizethetalentsofourentirepopulations. • Cooperation,CoordinationandConfidenceiswhatwewillcontinuetostrivefor. • GlobalEconomyandG20FrameworkforStrong,SustainableandBalancedGrowth • Wehavetakenanumberofimportantpolicyactionsthathavehelpedtocontainkeytailrisks,improvefinancialmarketconditionsandsustaintherecovery. • PrivatedemandhasstrengthenedintheU.S.andgrowthhaspickedupinJapanandtheU.K. • Therearesignsofrecoveryintheeuroarea. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  13. P age |13 • Whilegrowthhascontinuedinemergingmarketeconomies,ithassloweddowninsomeofthem. • Globalgrowthprospectsfor2013havebeenmarkeddownrepeatedlyoverthelastyear,globalrebalancingisincomplete,regionalgrowthdisparitiesremainwide,andunemployment,particularly amongyouth,remainsunacceptablyhigh. • Despiteouractions,therecoveryistooweak,andrisksremaintiltedtothedownside.Inthelastmonthsfinancialmarketvolatilityhasincreased. • 10.Weconsiderthemainchallengestotheglobaleconomytobe: • Weakgrowthandpersistentlyhighunemployment,particularlyamongyouth,andtheneedformoreinclusivegrowthinmanyeconomies; • FinancialmarketfragmentationinEuropeandthedecisiveimplementationofbankingunion; • Slowergrowthinsomeemergingmarketeconomies,reflecting insomecases theeffectofvolatilecapitalflows,tighterfinancialconditionsandcommoditypricevolatility,aswellasdomesticstructuralchallenges; • Insufficient levelsofprivateinvestmentinmanycountries,inpartduetocontinuingmarketuncertainties,aswellasinternalrigidities; • Highpublicdebtanditssustainabilityinsomecountriesthatneedtobeaddressedwhileproperlysupportingtherecoveryinthenear-term,especiallyincountrieswiththehighestactualandprojecteddebttoGDPlevels; • Volatilityofcapitalflowsasgrowthstrengthensandthereareexpectationsofeventualmonetarypolicyrecalibrationinadvancedeconomies; • Anincompleterebalancingofglobaldemand;and • Continueduncertaintiesaboutfiscalpolicydeliberations. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  14. P age |14 Toaddressthesechallengesand toplacetheglobaleconomyonastronger,moresustainableandbalancedgrowthpath,wehavebuilton ourprevious actionswithnewmeasuresassetoutin theStPetersburgActionPlan(Annex). TheActionPlanisdesignedtoboosteconomic activityandjobcreation,supporttherecovery,andaddressnear-termriskstotheoutlook,whilestrengtheningthefoundationsforstrong,sustainableandbalancedgrowththroughambitiousandwell-targetedreforms. Wewillacttogetherandimplementallourcommitmentsinatimelymannerandrigorouslymonitorthisprocess. Ourimmediatefocusisoncreatingtheconditionstoincreasegrowthandemploymentwithtimelyactionsthatbuildonthesignsofarecoveryin advancedeconomiestomakeitdurabletothebenefitofthewholeglobaleconomy. In thisrespect,theeuroareacommitstostrengthenthefoundationsforeconomicandmonetaryunion,includingthroughfurthereffortsto strengthenbankbalancesheets,reducefinancialfragmentationandmovingaheaddecisivelyandwithoutdelaytowardabankingunion. AdvancedG20countriesagree tomaintainaflexibleapproachinimplementingtheirfiscalstrategies,whileremainingcommittedtosustainablepublicfinances. Facingincreasedfinancialvolatility,emergingmarketsagreetotakethenecessaryactionstosupportgrowthandmaintainstability,includingeffortsto improvefundamentals,increaseresiliencetoexternalshocksandstrengthenfinancialsystems. Monetarypolicywillcontinuetobedirectedtowardsdomesticpricestabilityandsupportingtheeconomicrecoveryaccordingto therespectivemandatesofcentralbanks. We recognizethesupportthathasbeenprovided totheglobaleconomyinrecentyearsfromaccommodativemonetarypolicies,includingunconventionalmonetarypolicies. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  15. P age |15 Weremainmindfuloftherisksandunintendednegativesideeffectsofextendedperiodsofmonetaryeasing. We recognizethatstrengthenedandsustainedgrowthwillbeaccompaniedbyaneventualtransitiontowardthenormalizationofmonetarypolicies. Ourcentralbankshavecommittedthatfuturechangestomonetarypolicysettingswillcontinue to becarefullycalibratedandclearlycommunicated. Wereiteratethatexcessvolatilityoffinancialflowsanddisorderlymovementsinexchangerates canhaveadverseimplicationsforeconomicandfinancialstability,asobservedrecentlyinsomeemergingmarkets. Generallystrongerpolicy frameworksinthesecountriesallow themtobetterdealwiththesechallenges.Soundmacroeconomicpolicies,structuralreformsandstrongprudentialframeworkswillhelp addressanincreaseinvolatility. Wewillcontinue tomonitorfinancialmarketconditionscarefully. Wecommit tocooperate to ensurethatpoliciesimplementedtosupportdomesticgrowthalsosupportglobalgrowthandfinancialstabilityand to managetheirspilloverson othercountries. Wereiterateourcommitmentstomovemorerapidlytowardmoremarket-determinedexchangeratesystemsandexchangerateflexibilitytoreflectunderlyingfundamentals,andavoidpersistentexchangeratemisalignments. Wewillrefrainfromcompetitivedevaluationandwillnottargetourexchangeratesforcompetitivepurposes. Wewillresistallformsofprotectionismandkeepourmarketsopen. Wearealsocommittedtostrengtheningthefoundationsfor long-termgrowththroughimplementingambitiousandtargetedreforms InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  16. P age |16 designed to ensurefiscalsustainability,boostinvestment, increase productivityandlaborforceparticipation,andaddressinternalandexternalimbalances. Achievingastrongerandsustainablerecovery,whileensuringfiscalsustainabilityinadvancedeconomiesremainscritical. Asagreed,alladvancedeconomieshavedevelopedcredible,ambitious,andcountry-specificmedium-termfiscalstrategies. Thesestrategieswillbeimplementedflexiblytotakeinto accountnear-termeconomicconditions,soas tosupporteconomicgrowthand jobcreation,whileputtingdebtasashareofGDP onasustainablepath. Anumberofemergingmarketeconomieshavealsolaidoutkeyelementsoftheirstrategiestopromotefiscalsustainability. Recognizingtheneed topushaheadmoreurgentlywithimportantstructuralreforms,wehaveresetourreformagendaalongmorerelevant,concreteandwell-targetedlines. Membershavecommitted to awiderangeofreformstostrengthenthefoundationsforstrong,sustainableandbalancedgrowthoverthelongtermbyboostinginvestment,addressingfundamentalweaknesses,enhancingproductivityandcompetitiveness, increasinglabourforceparticipation,improvingfinancialstabilityandcreditaccess,andaddressing internalandexternalimbalances. Thesereformsarekeyto achievingalastingimprovementinpotentialgrowth,jobcreationandrebalancingdemand. Wearedeterminedto achievemoreprogresstowardbroadbasedrebalancingofglobaldemand. Whileglobalcurrentaccountimbalanceshavedeclined,reflecting inpartimportantreformsinanumberofcountries,asubstantialpartofthisprogresshasoccurreddue todemandcompression. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  17. P age |17 In ordertoensureadurableimprovementasglobalgrowthstrengthens,wearedeterminedtoundertakefurtherpolicy adjustmentstoward rebalancingglobaldemandbetweensurplusanddeficitcountries,aswellasinternalrebalancing. In thisrespect,itisessentialto achievestrongerdomesticdemandgrowthinlargesurpluseconomies,increasedsavingsandenhanced competitivenessindeficiteconomiesandmoreflexibleexchangerates. Wearecommittedtoactionsinalltheseareasandwillregularlyassessprogress. TheStPetersburgActionPlansetsforthourreformsforachievingstrong,sustainableandbalancedgrowth.Further,ourAccountabilityAssessmentdescribestheprogresswehavemadeonpastcommitments. Wewillidentifytheremainingkeyobstaclestobeaddressedandreformsneededtoachievestronger,moresustainableandbalancedgrowthinoureconomies. WeaskourFinanceMinisterstodevelopfurtherthecomprehensivegrowthstrategiesforpresentation totheBrisbaneSummit. Growththrough QualityJobs Weremainunitedinourresolve topromoteinclusivegrowthandmoreandbetterjobs. Unemploymentandunderemploymentinmanycountries,particularly amongyoungpeople,remainsoneofthekeychallengesconfrontingtheglobaleconomyandatoppriorityfortheG20. Creatingmoreproductiveandbetterqualityjobsisattheheartofourcountries’policiesaimedat achievingstrongsustainableandbalancedgrowth,povertyreductionandincreasingsocialcohesion. Weagreethatstrongandsupportivemacroeconomic,trade,investment,andlabourmarketpolicies,sustainablepublicfinance,asoundand well-regulatedfinancialsystem,andresilientandeffectivesocial InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  18. P age |18 • protectionsystemsarethefoundationforsustainablejob-creatingeconomicgrowth. • 26.Policyreformstosupporthigheremploymentandfacilitatejobcreationandbettermatchingofskillswithjobopportunitiesarecentralinourgrowthstrategies. • Wecommit totakeabroad-rangedaction,tailored to nationalcircumstances,topromotemoreandbetterjobs: • Improvebusinessenvironmentandstimulatethecreationofformal,moreproductiveandrewardingjobs,throughpro-growthstructuralreformsinproductandlabourmarkets,includingbypromotinglabourmarketadaptabilityandefficiency,ensuringadequatelabourprotection,aswellasappropriatetaxregimesandothergovernmentinitiativesthatmayberequired accordingto nationalcircumstances. • Investinourpeople’sskills,qualityeducationandlife-longlearningprogramstogivethemskillportabilityandbetterprospects,tofacilitatemobilityandenhanceemployability. • Fostertargetedinvestmentstoensurethatlabourmarketinfrastructureandeffectivelabouractivationpoliciesare inplace tohelpjobseekersfindworkandbringunder-representedandvulnerablegroupsintothelabourmarketandreduceinformality. • Improvejobquality,includingthroughworkingconditions,wagebargainingframeworks,national wage-settingsystems,andaccess tosocialprotection. • Developcountry-specificplansorsetsofactionsonemploymentandwewill discusstheprogressinBrisbane. • 27.Coordinatedandintegratedpublicpoliciesarecrucialto achievingstrong,sustainable,andbalancedgrowth,andrestoringconfidenceintheglobaleconomy. • WeendorsetherecommendationsofourLabourandEmploymentandFinanceMinisters tomobilize,coordinateandintegrate,ournational InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  19. P age |19 policies(macroeconomic,financial,fiscal,education,skillsdevelopment,innovation,employment,socialprotection)topromotethecreationof qualityjobs,whileincreasingproductivitywithfullrespectforFundamentalPrinciplesandRightsatWork,to ensurehigheremploymentlevelsandasustaineddeclineinunemployment,underemploymentandinformalemployment. ThejointmeetingofourLabourandEmploymentandFinanceMinisters,organizedforthefirsttime,wasawelcomesteptowardscoordinationandintegrationoflabour,employmentandsocialpolicieswithourmacroeconomicandfinancialpolicies. WecalluponourMinistersofLabourandEmploymentandourMinistersofEconomyandFinancetocontinue tocollaboratetopromotequalityjobcreationandjob-richandsustainedgrowth. WeencouragerelevantinternationalorganizationsincludingtheILO,theOECD,andtheWorldBankGroup to analyzetherecentexperiencesoftheG20countriesandidentifybestpracticesthathavebeenmostsuccessful in creatingmoreandbetterjobs,promotinglabourformalization,reducinginequality,ensuringeffectivesocialprotectionandlabourmarketadaptability,asinputs to futuredeliberationsoftheG20LabourandEmploymentMinisters. Promotingyouthemploymentisaglobalpriority. Wearecommittedtoqualityapprenticeshipandvocationaltrainingprogrammes,findinginnovativewaystoencouragefirmstohireyouthforexampleby,whereappropriate,reducingnon-wagelabourcosts,movingtowardsearlyinterventionmeasuresandeffectivejob-searchassistancefordifferentgroupsofyouth,andmotivatingyouthentrepreneurshipand businessstart-ups. Tailoredstrategiesincludingyouthguaranteeapproaches,developingschoolanduniversitycurriculathatsupportentrepreneurship,andfacilitatingexchangeofbestpracticesamongtheG20countriesandthe socialpartnersarecrucialinthisrespect. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  20. P age |20 Wecommit to increaseourefforts to supportinclusivelabourmarkets,betterlabourmarketinformationandeffectiveemploymentservices,whichwillcontribute tohigheremploymentlevelsalongwithasustaineddeclineinunemployment,underemploymentandinformalemployment. Weagreethatappropriatelabourmarketandsocialpoliciescanensurebettersocialcohesion,economicstabilization,supportaggregatedemandandmediumtolonger-termgrowth. Soundnationalsocialprotectionfloorsareneeded,whichareaffordable,effective,efficient,andsociallyadequate. Oursocialprotectionpoliciesshouldencourageemploymentandjob-search,providing help ifnecessary. Wecommit to encouragetheprivatesector,includingsmallandmediumsizedenterprisesasoneofourmostimportantpartners,infosteringinclusiveeconomicgrowthincludingforjobcreationandlabourabsorption. Weencourage theIMF aswellas otherrelevantinternationalorganizationstocontinuetheirresearchinthearea ofgrowth,employmentandincomedistribution. We recognizetheimportanceofensuringthatunderrepresentedandvulnerablegroupsaregivenbothincentivesandsupportto find productiveandrewardingjobs. Specialattentionmustbegiven tothosegroupsfacingthegreatestbarrierstofindingorremaininginemploymentsuchasyouth,women,long-termunemployed,low skilledworkers,singleparents,peoplewith disabilitiesand olderworkers. Wearecommittedthereforetodevelopandstrengthentailored activation strategiesforthesegroupsthatcombineincomesupportforthoseoutofworkwithmeasurestoimprovetheiremployabilitythroughjobsearch assistance,workexperience,publicemploymentprograms,hiring InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  21. P age |21 subsidies,conditionaltransfersandtrainingaswellasreducedobstaclesforemploymentaspercountry’scircumstances. Thesemeasuresshouldbelinkedtomoregeneraleffortstoprovidebetteropportunities to gainformalemployment. WecalluponourMinistersofLabourandEmploymentandMinistersofFinancetoworktogethertoexchangebestpracticesand todeliveronimplementationofthiscommitmentwiththesupportoftheILO,theOECDandtheWorldBankGroupinidentifyinggoodpracticesandeffectivemeasuresformoreinclusivelabourmarkets. Weconfirmtheimportanceofreportingprogressinmeetingourcommitmentsandofsharingourexperienceofeffectivepoliciesandmeasures. WeconsiderthedatabasepreparedbytheG20TaskForceonEmploymentasanimportant tool,whichallowssharingbestpracticesandwaystoaddresslabourmarketandemploymentchallenges,andservesasanimportantsourceofinformationfortheeconomicanalysesanddecision-making. Thisisparticularlyimportantfortheemploymentandskillsdevelopmentofyoungpeople. Wecommit to continuetoworkandtobroadenthisapproachincludingthescopeofthedatabase,todevelopcountryownedandcountryspecificmonitoringmethodologies, wherenecessary,andusethedatabasewhenbuildinguponourcountryownedandcountryspecific policies. WeappreciatethecontributionoftheB20andtheL20and acknowledgethecrucialroleofsocialdialogueasameanstoachievetheG20 objectivesoffosteringgrowth,employment,andsocialcohesion. WethanktheG20TaskForceonEmploymentforitswork,andextenditsmandateforanotheryear. WeasktheG20TaskForceonEmployment tocontinueexploringtheissuesrelatedtoeconomicandlabourandemploymentpolicies,andto InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  22. P age |22 focusonstrategiestoaddressstructuralunemployment,especiallyamongyouthandthelong-termunemployed,andonnationalsocialprotectionsystems. Thiswillbuildonthe termsproposedbyourLabourandEmploymentMinistersincludingforsharingofbestpracticesandreviewingprogressonthekeyelementsidentifiedonqualityapprenticeships. WeasktheTaskForce to coordinatetheexchangeofcountry-specificplansorsetsofactionsonemployment,developedasappropriateaccordingtoourdifferentconstitutionalcircumstances,workingwiththeILO,OECDandtheWorldBankGroup. Thesereportsshouldincludeinformationonthemixofpoliciesand programsthatwillbeusedbyparticipatingG20memberstoaddresstheirrespectiveemploymentchallenges. In addition,giventherecurringlosstohumanlife andassetsacrosstheworldonaccountofunsafeworkingplaces,wedirecttheTaskForcetopartnerwithILOinconsultationwithcountries,andtoconsiderhowtheG20mightcontribute to saferworkplaces. WeencouragefurthercooperationandcoordinationbetweentheTask ForceonEmploymentandFrameworkandDevelopmentWorkingGroupsontheactivitiesrelatedtothelabourissuesundertheG20. FinancingforInvestment 35.We recognizethekeyroleoflong-terminvestmentforsustainablegrowthandjobcreation,aswellastheimportanceofputting in placeconditionsthatcouldpromotelong-termfinancingfor investment,includingininfrastructureandsmallandmedium-sizedenterprises(SMEs),taking intoconsiderationcountry-specificcircumstances. In particular,werecognizetheparamount importanceoftheinvestmentclimatein attractinglong-termfinancingandwilltakeacomprehensiveapproachtoidentifyingandaddressing impedimentstothemobilizationofprivate capitalandimprovingunderlying investmentconditionsand theefficiencyofpublicinvestment. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  23. P age |23 Toliftgrowthandcreatejobsbyboostinginvestment,wecommit toidentifyandstarttoimplementbytheBrisbaneSummitasetofcollectiveandcountry-specific actionsthattangiblyimproveourdomesticinvestmentenvironmentssuchthattheyaremorefavorabletolong-terminvestmentfinancingand canlead to aneffectiveincreaseofimplementedprojects,particularlyininfrastructureandforSMEs. Theseactionswillbepartofourcountry-growthstrategies. WeendorsetheWorkplanpreparedbytheG20StudyGrouponFinancingforInvestment(Annex). WecallonourFinanceMinistersandCentralBankGovernorswithinputfromrelevantinternationalorganizationsandincooperationwith otherrelevantG20workinggroups toextendtheanalysisofthechallengesassociatedwiththeavailabilityoffinancingforlong-terminvestmenttodrivewell-founded,evidence-basedpolicyinitiatives. WelookforwardtotherecommendationsbyourFinanceMinistersatournextSummitinformedby thereportsoftherelevantinternationalorganizations. Weagreeinparticularontheneedforgovernments to promotepoliciesthatfacilitateandencourageinstitutional investorstofinancelong-terminvestmentconsistentwiththeirmandatesandprudent risk-taking. WeendorsetheG20/OECDHigh-LevelPrinciplesofLong-TermInvestmentFinancingby InstitutionalInvestors(Annex)andaskourFinanceMinistersandCentralBankGovernors to identifyapproachestotheirimplementationworkingwiththeOECDandotherinterestedparticipantsbythenextSummit. WelookforwardtotheFSB’songoingmonitoringoftheimpactoffinancialregulatoryreformsonthesupplyoflong-terminvestmentfinancing. WecallonourFinanceMinisterstoidentifymeasuresbythenext Summit to facilitatedomestic capitalmarketdevelopmentandimprove InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  24. P age |24 theintermediationofglobalsavingsforproductivelong-terminvestments,including in infrastructure,andtoimproveaccesstofinancingforSMEs. WeaskFinanceMinistersandCentralBankGovernorstoexplorethewaysinwhichprivatefinancingandcapitalmarkets canbebettermobilized. Wealsolookforward tobuildingontheongoingworkoftheMultilateralDevelopmentBanksto developnewapproachesinordertooptimizetheuseofexistingresources,includingthroughleveragingprivate capital,andtostrengthentheirlendingcapacity. WetakenoteoftheworkunderwaybytheWorldBankGroupandRegionalDevelopmentBanks tomobilizeandcatalyzeadditionalfinancingforinfrastructureinvestment,particularlyin emergingmarketsanddevelopingcountries. We recognizetheimportanceofimprovingprocessesandtransparencyintheprioritization,planning,andfundingofinvestmentprojects,especiallyininfrastructure,andin makingbetteruseofprojectpreparationfunds. Particularattentionwillalsobegiventowaystoimprovethedesignofandconditionsforproductivepublic-privatepartnership(PPP)arrangements. EnhancingMultilateralTrade Freetradeandinvestment,and achievingtheopen,rules-based,transparentandnon-discriminatoryWTO-basedtradingsystemarecrucialforrestoringglobalgrowth. Weunderlinetheimportanceoftradeasakeytoeconomicgrowth,sustainabledevelopmentandjobcreationgloballyandatnationallevel. Wereaffirmthesignificanceofthesuccessfulfunctioningofthemultilateraltradingsystemanditsimportancein ensuringproperrulesenforcement. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  25. P age |25 AsuccessfuloutcomeattheWTOMinisterialConference(MC9) in BaliinDecember2013ontradefacilitation,andsomeelementsofagricultureanddevelopmentissues,wouldbeasteppingstonetofurthermultilateraltradeliberalizationandprogressinDohaDevelopmentAgendanegotiations,providing newconfidenceinsuccessfulpost-BaliDoha roundnegotiations. WecallonallWTOmemberstoshowthenecessaryflexibilitiesinorder tobridgeexistinggapsanddeliverpositiveandbalancedresultsatMC9. Westandreadytomakesignificantcontributionsinthesenegotiationstoachievesuchresults,deliveringanearlyharvestatMC9and demonstratingthecredibilityofthenegotiatingfunctionoftheWTO. Werecognizetherisksofeconomicslowdownandtradeweakeningposedbyprotectionism. Weextenduntiltheendof2016ourstandstillcommitment;beingfullycommitted to furtherprogressinremovingbarriersandimpedimentstoglobaltradeandinvestment,wereaffirmcommitment to rollbacknewprotectionistmeasures. WiththesecommitmentswestresstheimportanceoffurthercurbingprotectionismthroughtheWTO,and tothisendwewillendeavortomakeMC9successfulasasteptowardsasuccessfulconclusionoftheDohaDevelopmentRoundandasanimpetusfornegotiationsona roadmaptoreachthisgoal. Wevaluemonitoringoftradeandinvestmentrestrictive/openingmeasuresbytheWTO,theOECDandtheUNCTAD. Wecallonthemtocontinueandreinforcethisworkconsistentwiththeirrespectivemandatessoas tobetterresistprotectionismandpromoteliberalizationofglobaltradeandinvestment. WewelcometheWTO'spublicwebsiteprovidingtransparencyoverthesemeasuresforthebenefitofgovernments,privatesector,andcivilsociety. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  26. P age |26 Transparencyisacornerstoneofthe multilateraltradingsystem. WearecommittedtotimelycomplyingwithWTOnotificationrequirementsandenhancingtransparencythroughtheexistingWTOrules. Weunderstandtheimportanceofregionaltradeagreements(RTAs)andtheircontribution totradeandinvestmentliberalization. Wecommit to ensurethat RTAssupportthemultilateraltradingsystem.Realizingthatenhancingtransparencyin RTAsandunderstandingofRTAsandtheireffectsonthefurtherdevelopmentofmultilateralrulesareofsystemicinteresttoallG20members,wearecommittedtocontinueourworkon RTAsintheWTO,andshareourapproachforAdvancingTransparencyinRegionalTradeAgreements(Annex). WesupporttheTransparencyinTrade(TNT)Initiative,apartnershipbetweentheAfrican DevelopmentBank,theInternationalTradeCentre(ITC),theUnitedNationsConferenceonTradeandDevelopment(UNCTAD),andtheWorldBank,whichwillprovideforopenuseofthetradepolicydataandanalysissystemtoidentifynewtradeopportunitiesandfacilitatetradeflows.WealsowelcometheWTO'sIntegratedTradeInformationPortal(I-TIP). We recognizetheimportanceofbetterunderstandingtherapidexpansionofglobalvaluechains(GVCs)andimpactsofparticipationinGVCsforgrowth,industrialstructure,developmentandjobcreation. In thisregard,wewelcometheworkdoneby theOECD,theWTOandtheUNCTADandask themtoseektheviewsofgovernmentsandcontinuetheirresearchontheimpactofGVCs,particularlyinrelation totheinfluenceofGVCsontrade,economicgrowth,development,jobcreationanddistributionofvalue-addedalongGVCs. IdentifyingtheopportunitiesandchallengesofparticipationinGVCsandmakingavailablevalue-addedtradestatisticsmayhelpcountriesinduecourse todecideuponappropriatepolicymakingoptionstobenefitfromGVCs. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  27. P age |27 WecallfortheOECDincooperationwiththeWTOandtheUNCTADtodeliverareportin thefirsthalfof2014. AddressingBaseErosionandProfitShifting,TacklingTaxAvoidance,andPromotingTaxTransparencyandAutomaticExchangeofInformation 50.In acontextofseverefiscalconsolidationandsocialhardship, inmanycountriesensuringthatalltaxpayerspaytheirfairshareoftaxesismorethan everapriority. Taxavoidance,harmfulpracticesandaggressivetax planninghave tobetackled. Thegrowthofthedigitaleconomyalsoposeschallengesforinternationaltaxation. Wefullyendorse theambitiousandcomprehensiveActionPlan– originatedintheOECD– aimedataddressingbaseerosionandprofitshiftingwithmechanismtoenrichthePlanasappropriate. WewelcometheestablishmentoftheG20/OECDBEPSprojectandweencourageallinterestedcountriestoparticipate. Profitsshouldbetaxedwhereeconomicactivitiesderivingtheprofitsareperformedandwherevalueiscreated. InordertominimizeBEPS,wecallonmembercountriestoexaminehowourowndomesticlawscontributetoBEPSand toensurethatinternationalandourowntaxrulesdonotallow orencouragemultinationalenterprisestoreduceoveralltaxespaidbyartificiallyshiftingprofitstolow-taxjurisdictions. Weacknowledgethateffectivetaxationofmobileincomeisoneofthekeychallenges. Welookforwardtoregularreportingonthedevelopmentofproposalsand recommendationstotacklethe15issuesidentifiedintheActionPlanand InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  28. P age |28 committotake thenecessaryindividualandcollective actionwiththeparadigmofsovereigntytakenintoconsideration. 51.Wecommendtheprogressrecentlyachievedinthearea oftaxtransparencyandwefullyendorsetheOECDproposalforatrulyglobalmodelformultilateralandbilateralautomaticexchangeofinformation. Callingonallotherjurisdictionstojoinusbytheearliestpossibledate,wearecommitted to automaticexchangeofinformationasthenewglobalstandard,whichmust ensureconfidentialityandtheproperuseofinformationexchanged,andwefullysupporttheOECD workwithG20countriesaimedatpresentingsuchanewsingleglobalstandardforautomaticexchangeofinformationbyFebruary2014andtofinalizingtechnicalmodalitiesofeffectiveautomaticexchangebymid-2014. In parallel,weexpect to begintoexchangeinformationautomaticallyontaxmattersamongG20membersbytheendof2015. Wecallonallcountriesto jointheMultilateralConventiononMutualAdministrativeAssistancein TaxMatterswithoutfurtherdelay. Welookforwardtothepracticalandfull implementationofthenew standardonaglobalscale. Weencourage theGlobalForumtocompletetheallocationofcomprehensivecountryratingsregardingtheeffectiveimplementationofinformationexchangeuponrequestandensurethattheimplementation ofthestandardsaremonitoredonacontinuousbasis. WeurgealljurisdictionstoaddresstheGlobalForumrecommendationsinparticularthose14thathavenotyetmovedtoPhase2. WeinvitetheGlobalForumtodrawontheworkoftheFATFwithrespect tobeneficialownership. WealsoasktheGlobalForumtoestablishamechanismtomonitorandreviewtheimplementationofthenewglobalstandardonautomaticexchangeofinformation. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  29. P age |29 Developingcountriesshouldbeabletoreap thebenefitsofamoretransparentinternationaltaxsystem,andto enhancetheirrevenuecapacity,asmobilizingdomesticresourcesiscriticalto financingdevelopment. We recognizetheimportanceofallcountriesbenefittingfromgreatertaxinformationexchange. Wearecommittedtomakeautomaticexchangeofinformationattainablebyallcountries,includingLICs,andwillseektoprovidecapacitybuildingsupport tothem. WecallontheDevelopmentWorkingGroupinconjunctionwiththeFinanceTrack,toworkwiththeOECD,theGlobalForumandotherIOstodeveloparoadmapshowinghowdevelopingcountries canovercomeobstaclestoparticipationintheemerging newstandardinautomaticexchangeofinformation,andtoassisttheminmeetingthestandardinaccordancewiththeactionenvisagedintheStPetersburgDevelopmentOutlook. TheWorkingGroupshouldreportbackbyournextmeeting.Workingwithinternationalorganizations,wewillcontinuetoshareourexpertise,helpbuild capacity,andengageinlong-termpartnershipprogrammestosecuresuccess. In thisrespect,wewelcometheOECDTaxInspectorswithoutBordersinitiative,whichaims to shareknowledgeandincreasedomesticcapacitiesindevelopingcountriesinthetaxarea. Finally,wearecommitted to continuetoassistdevelopingcountries,includingthroughtheIOs,inidentifyingindividualcountryneedsand buildingcapacityintheareaoftaxadministration(inaddition toautomaticexchangeofinformation)andencouragesuchsupporttobedevelopingcountryled. InternationalFinancialArchitecture CompletingtheongoingreformsofIMF governanceisindispensableforenhancingtheFund’scredibility,legitimacyand InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  30. P age |30 effectiveness.Forthisreason,theratificationofthe2010IMFQuotaandGovernanceReformisurgentlyneeded. Wecontinue tosupport theIMF ExecutiveBoard’sdecisiontointegratetheprocessofreachingafinalagreementonanewquotaformulawiththe15thGeneralReviewofQuotas. Weremaincommitted,togetherwiththewholeIMFmembership,toagreeonthequotaformulaandcompletethe15thGeneralQuotaReviewbyJanuary2014asagreedattheSeoulSummitandreiteratedin CannesandLosCabos. Weattachhighimportancetosecuringcontinuedprogressinmeetingthisobjective,includingbythetimeoftheOctober2013G20MinisterialandIMFCmeetings. WereaffirmourpreviouscommitmentthatthedistributionofquotasbasedontheformulashouldbetterreflecttherelativeweightsofIMFmembersintheworldeconomy,whichhavechangedsubstantiallyinviewofstrongGDP growthindynamicemergingmarketanddevelopingcountries. Wereaffirmtheneed toprotectthevoiceandrepresentationoftheIMFpoorestmembersaspartofthisGeneralReviewofQuotas. 54.Recognizingtheimportanceofeffectiveglobalsafetynets,inLosCaboswewelcomedthecommitmentstoincreasetemporaryresourcesavailabletotheIMFbyUS$461billionmadebyasignificantnumberofcountries. Todaywearepleased to announcethatthevastmajorityofthesecommittedresourceshavebeenmadeavailable to theIMFthroughbilateralloan ornotepurchaseagreements. Thisbroadcooperativeeffortdemonstratestheinternationalcommunity’sdeterminationtoenhancetheIMF’sroleincrisispreventionandresolutionandthuscontributetosafeguardingglobalfinancialstability. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  31. P age |31 WealsoreiteratethatRegionalFinancingArrangements(RFAs)can playanimportantroleintheexistingglobalfinancialsafetynet. WereaffirmthecommonprinciplesforcooperationbetweentheIMFandRFAsthatwe adoptedinCannes,whichemphasizetheimportanceofcooperationwhilesafeguardingthemandateandindependenceoftherespectiveinstitutions. RecognizingrecentworkundertakeninthisareabyboththeIMFandG20,welookforward to aflexibleandvoluntarydialoguebetweentheIMF andRFAsonanongoingbasisthroughwell-establishedcommunicationchannels. Wetakenoteoftheimportanceofadialogue amongRFAstofosteraninformalexchangeofviewsandexperiencesinaflexibleandvoluntaryway. In thiscontext,weask ourFinanceMinistersandCentralBank Governors to followthedevelopmentsandprogressintheIMF-RFAcooperation,aswellasthedialogueamongRFAs. Strengtheningexistingpublicdebtmanagementpracticesisimportantto achievemoreresilientpublicfinances. WewelcometheongoingworkbytheIMFandWorldBankGrouptoreviewandupdatethe“GuidelinesforPublicDebtManagement”inlightofrecentexperiences. WeaskourFinanceMinisterstoconsider,attheirOctobermeeting,progressinupdatingtheGuidelines,andreviewtheOECD’sinterimreportonupdatingitsleadingpracticesforraising,managing,andretiringpublicdebt,includingonstateguarantees. Eventsin recentyearshaveshowntheimportanceofdebtsustainabilityforall. We,therefore,endorsecontinuedattention tothisissuebytheIMFandtheWorldBank. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  32. P age |32 WealsosupporttheimplementationoftheIMF-WorldBankDebtSustainabilityFrameworkforLow-IncomeCountriesandwilltaketheFrameworkintoconsiderationinordertobetterinformourpracticesand promotesustainablefinancingandsustainablegrowthanddevelopment throughappropriatechannels. Weagreethatfurtherinclusivediscussionswithlow-incomecountriesareneededontheseissues,includingonthepossibilityofdevelopingguidelinesforsustainablefinancing. WeasktheIMFandtheWorldBanktocontinueassistinglow-incomecountriesattheirrequestindevelopingprudentmedium-termdebtmanagementstrategiesandenhancingtheirdebtmanagementcapacity. WenotetheworkundertakenbytheIMFandBISindevelopingindicatorsthatreflectgloballiquidityconditions,lookingbothatpriceandquantity-basedmeasures. WecallontheFundtocarryoutfurtherresearchwithaviewtodevelopproposalsonhow toincorporategloballiquidityindicatorsmorebroadlyintothe Fund'ssurveillancework. Wereiteratethatwelldevelopedlocalcurrencybondmarkets(LCBMs)playanimportantroleinimprovingtheresilienceofthedomesticeconomyandfinancialsystems. WewelcometheworkoftheIMF,theWorldBankGroup,theEBRDOECDandotherIOs to implementtheG20ActionPlanontheDevelopmentofLCBMs,includingthroughthecreationofaDiagnosticFrameworkonLCBM. WeencourageInternationalOrganizations,othertechnicalassistanceproviders,andcountryauthoritiestoconsidertheuseoftheDiagnosticFrameworkinidentifyingandsettingreformand capacitybuildingprioritiesinsupportofLCBMdevelopment. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  33. P age |33 • Wewillfulfillourcommitment to contribute to asuccessful InternationalDevelopmentAssociation(IDA)17Replenishment,aswellasAfricanDevelopmentFund(AfDF)13 Replenishment. • FinancialRegulation • Achievementstodateandaroadahead • In thepastfiveyears,wehavemadesubstantialprogressinimplementinginternationallyconsistentreformstoourfinancialsystems.Allmajorjurisdictions,inpartorinfull,have: • implementednewglobalcapitalstandards(Basel3) • completedthenecessaryframeworksforOTCderivativestobetradedonexchangesorelectronictradingplatforms,centrallycleared,andreported; • identifiedglobalsystemicallyimportantbanksandinsurers,andagreedtosubjectthemtoheightenedprudentialstandardstomitigatetheriskstheypose; • implementedagreedtoolsandproceduresfortheorderlyresolutionoflarge,complexfinancialinstitutionswithouttaxpayerloss;and • progressedinaddressingpotentialsystemicriskstofinancialstabilityemanatingfromtheshadow-bankingsystem. • Theinternationalcoordinationandcommitmenttotheimplementation ofthesereformsisunprecedented. • Butwehavemoreworktodo. • Wearecommittedtomaintainthemomentumofreformuntilthejobisdone. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  34. P age |34 Towardsafinancialsystemthatsupportsstrong,sustainableandbalancedeconomicgrowth SinceourcommitmentsinWashingtoninNovember2008wehaveagreedandareimplementingabroadrangeofpolicyreformsthataddressthemajorfaultlinesthatcausedthecrisis,andensurethatallfinancialinstitutions,marketsandparticipantsareregulatedorsubjecttooversightappropriate to theircircumstancesinaninternationallyconsistentandnon-discriminatoryway. Ourworkhasadvancedsubstantially,butisnotyetcomplete.Wearefullycommittedtotacklingsystemicrisk. Wearebuildingmoreresilientfinancialinstitutions,makingsubstantialprogresstowardsendingtoo-big-to-fail,increasingtransparencyandmarketintegrity,fillingregulatorygapsandaddressingtherisksfrom shadowbanking. Wearepromotingcontinuouslyfunctioningfinancialmarketsbymakingderivativesmarketssafer,strengtheningmarketinfrastructureandreformingcreditratingagencies. Wearecommittedtofullyrealizingthebenefitsofanopen,integratedandresilientglobalfinancialsystem. Tothisend,wewillcontinuetotakenecessaryactionsineachofourjurisdictions to fullyimplementtheagreedreformsinaconsistentand non-discriminatoryway. Wewillenhancecooperationandinformationsharing. Wearepromotingfinancialregulatoryreformstargetedatreducingmoralhazardandsystemicrisk andfosteringastablefinancialsystemthatsupportssustainableandbalancedeconomicgrowth. Thus,wewelcometheestablishmentthisyearofthe FSBasalegalentitywithgreaterfinancialautonomyandenhanced capacitytocoordinatethedevelopmentandimplementationoffinancialregulatorypolicies. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  35. P age |35 WealsowelcometheFSBoverallandnarrativeprogressreportsonfinancialregulatoryreform,preparedforourSummit,andthesubstantialprogress achievedtodate. WesupporttheFSB’s intentionto reviewthestructureofitsrepresentationandask theFSBtoreportonthisreview to ournextSummit. WecommendtheprogressmadebytheFSBtogetherwithstandardsettingbodiesandtheIMFandtheWorldBankGroupinmonitoringtheeffectsofevolvingregulatoryreformsonemergingmarketsand developingeconomies(EMDEs)withtheview to addressmaterialunintendedconsequenceswithoutprejudicetoourcommitment toimplementtheagreedreforms. WeasktheIMF,theWorldBankGroupandstandardsettingbodiestostepuptheirmonitoring,analysisandassistanceinthisarea. Lastly,weencouragetheFSBtocontinue to monitor,analyzeandreportontheeffectsofevolvingregulatoryreformsonEMDEsasapartofitsoverallimplementationmonitoringframework. Weareresolvedtoseethefinancialreformagendathroughtoitscompletioninamannerthatavoidsfragmentingtheglobalfinancialsystem. Wewillcontinue tocooperateonallfinancialregulationissuesandlookforwardtofurtherprogressbyourFinanceMinisters,CentralBank GovernorsandtheFSBwhenwenextmeet. Wewillalsocontinue to monitorandassesstheimpactoffinancialregulatoryreformsontherobustnessofthefinancialsystem,stabilityandoneconomicgrowth,andontheavailabilityoflong-termfinanceforinvestment. Buildingresilientfinancialinstitutionsandending“too-big-to-fail” InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  36. P age |36 WereiterateourcommitmenttoimplementBaselIIIaccordingtointernationallyagreedtimelinesandwelcometheprogressthathasbeen madesinceLosCabos. ItisimperativethattheBaselIIIstandardsareconsistentlyapplied.WethereforewelcometheworkoftheBaselCommitteeonBanking Supervision(BCBS)toassesstheconsistencyofjurisdictions’ruleswith BaselIIIandtheirupdatedprogressreportonBaselIIIimplementation.WealsowelcometherecentBCBSreportontheregulatoryconsistencyofrisk-weightedassets. WelookforwardtotheworkbytheBCBStoimprovecomparabilityofregulatorycapitalratios. WeexpecttheBCBSto finalizeitsproposalsontheremainingcomponentsagreedtointheBaselIIIframework– theinternationallyharmonizedleverageratioandthenetstablefundingratio-inlinewithagreedtimelinesandprocedures. WewelcometheFSBreportontheprogressmadeandnextstepstowardsending“toobigtofail”. Werenewourcommitment to makeanynecessaryreformstoimplementfullytheFSB’sKeyAttributesofEffectiveResolutionRegimesforallpartsofthefinancialsectorthatcould causesystemicproblems. Wewillundertakethenecessaryactionstoremoveobstaclestocross-borderresolution. Wereaffirmourcommitmenttoensurethatsupervisorshavestrongmandates,adequateresourcesandindependencetoact. WecallontheFSB,inconsultationwithstandardsettingbodies,toassessanddevelopproposalsbyend-2014ontheadequacyofglobalsystemicallyimportantfinancialinstitutions’lossabsorbingcapacitywhentheyfail. We recognizethatstructuralbankingreforms canfacilitateresolvabilityandcallon theFSB,incollaborationwiththeIMFandtheOECD,to InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  37. P age |37 assesscross-borderconsistenciesandglobalfinancialstabilityimplications,takingintoaccountcountry-specificcircumstances,andreporttoournextSummit. Wewelcomethepublicationoftheinitiallistofglobalsystemicallyimportantinsurers(G-SIIs),to whichresolutionplanningandenhancedgroup-widesupervisionwill initiallyapply. Welookforwardtoitsannualupdateand to thefinalizationofastraightforward,group-wide capitalrequirementbytheInternationalAssociationofInsuranceSupervisorsbythenextG20Summitin2014thatwillserveasafoundationforhigherlossabsorbencyrequirementsfor G-SIIs. In addition,welookforwardtoitsfurtherworktodevelopacomprehensive,group-widesupervisoryandregulatoryframeworkforinternationallyactiveinsurancegroups,includingaquantitative capitalstandard. WeasktheFSB,inconsultationwiththeInternationalOrganizationofSecuritiesCommissions(IOSCO)and otherstandardsettingbodies,todevelopforpublicconsultationmethodologiesforidentifyingglobalsystemicallyimportantnon-banknon-insurancefinancialinstitutionsbyend-2013. WecallontheCommitteeonPaymentandSettlementSystemsandIOSCOtocontinuetheirworkonsystemicallyimportantmarketinfrastructures. Promotingtransparent,continuouslyfunctioningfinancialmarkets WewelcometheFSB’sreportonprogressin over-the-counter(OTC)derivativesreforms,includingmembers’confirmedactionsandcommittedtimetablestoputtheagreedOTCderivativesreformsintopractice. Wealsowelcometherecentsetofunderstandingsbykeyregulatorson cross-borderissuesrelatedtoOTCderivativesreforms,asamajor InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  38. P age |38 constructivestepforwardforresolvingremainingconflicts,inconsistencies,gapsandduplicativerequirementsglobally,andlookforwardtospeedyimplementationoftheseunderstandingsonceregimesare inforceandavailableforassessment. Weagreethatjurisdictionsandregulatorsshouldbeabletodefertoeachotherwhenitisjustifiedby thequalityoftheirrespectiveregulatoryandenforcementregimes,basedonsimilaroutcomes,inanon-discriminatoryway,payingduerespect tohomecountryregulationregimes. Wecallonregulatorsin cooperationwiththeFSBandtheOTCDerivatives RegulatorsGrouptoreportontheirtimelinetosettletheremainingissuesrelatedtooverlappingcross-borderregulatoryregimes,andregulatoryarbitrage. WenotetheoutcomesoftheG20high-levelseminaron benchmarksandcreditratingagencies. Wecallonnationalauthoritiesandstandardsettingbodiestoaccelerateprogressinreducingrelianceoncreditratingagencies,inaccordancewiththeFSBroadmap. Weencouragefurtherstepstoenhancetransparencyandcompetitionamongcreditratingagenciesandlookforwardto IOSCO’sreviewofitsCode ofConductforcreditratingagencies. Wesupporttheestablishmentofthe FSB’sOfficialSectorSteeringGrouptocoordinateworkonthenecessaryreformsoffinancialbenchmarks. WeendorseIOSCO’sPrinciplesforFinancialBenchmarksandlookforwardtoreformasnecessaryofthebenchmarksusedinternationallyinthebankingindustryandfinancialmarkets,consistentwiththeIOSCOPrinciples. WewelcometheFSB’sprogressreportontheimplementationoftheprinciplesandstandardsforsoundcompensationpractices.Wereaffirmourcommitment toensurethattheseprinciplesandstandardsareimplementedinaconsistentmannerandasktheFSBtocontinueits ongoingmonitoring. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  39. P age |39 Weunderlinetheimportanceofcontinuingworkonaccountingstandardsconvergenceinordertoenhanceresilienceoffinancialsystem. WeurgetheInternational AccountingStandardsBoardandtheUSFinancialAccountingStandardsBoardtocompletebytheendof2013theirworkonkeyoutstandingprojectsforachievingasinglesetof high-quality accountingstandards. Weencouragefurthereffortsbythepublicandprivatesectortoenhancefinancialinstitutions’disclosuresoftheriskstheyface,includingtheongoingworkoftheEnhancedDisclosureTaskForce. Wereiterateourcallforfurtherprogressandencourageadherencetointernationalcooperationandinformationexchangestandardsforfinancialsupervisionandregulation. Addressingrisksposedbytheshadow banking Wewelcometheprogressachieved indevelopingpolicyrecommendationsfortheoversightandregulationoftheshadowbankingsystem,asanimportantstepinmitigatingthepotentialsystemicrisksassociatedwiththismarketwhilerecognizingthatnonbankfinancialintermediation canprovideanalternative to banks inextendingcredittosupporttheeconomy. Wewillworktowardstimelyimplementationoftherecommendationswhiletakinginto accountcountryspecificcircumstances. WewelcometherespectiveFSBreportsandagreedonastraightforwardroadmap(Annex)forworkonrelevantshadow bankingentitiesandactivitieswithcleardeadlinesand actions to progressrapidlytowardsstrengthenedandcomprehensiveoversightandregulationappropriatetothesystemicrisksposed. Tacklingmoneylaunderingandterrorismfinancing Wereiterateourcommitment to FATF’sworkinfightingmoneylaunderingandterrorismfinancinganditskeycontributionintotackling InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  40. P age |40 othercrimessuchastaxcrimes,corruption,terrorism,anddrugtrafficking. In particular,wesupporttheidentificationandmonitoringofhigh-riskjurisdictionswithstrategicanti-moneylaundering(AML)/counteringthefinancingofterrorism(CFT)deficiencieswhilerecognizingthecountries’positiveprogress infulfillingtheFATF’sstandards. Weencourageallcountriestotackletherisksraisedbyopacityoflegalpersonsandlegalarrangements,andwecommittotakemeasurestoensurethatwemeettheFATFstandardsregardingtheidentificationofthebeneficialownersofcompaniesandotherlegalarrangementssuchastruststhatarealsorelevantfortaxpurposes Wewillensurethatthisinformationisavailableinatimelyfashiontolawenforcement,taxcollectionagenciesandotherrelevantauthoritiesinaccordancewiththeconfidentialitylegalrequirements,forexamplethroughcentralregistriesorotherappropriatemechanisms. WeaskourFinanceMinisterstoupdateusbyournextmeetingonthestepstakentomeetFATFstandardsregardingthebeneficialownership ofcompaniesandotherlegalarrangementssuchastrustsbyG20countriesleadingbyexample. FinancialInclusion, FinancialEducation,ConsumerProtection 78.WewelcometheprogressmadebytheGlobalPartnershipforFinancialInclusion(GPFI)onadvancingfinancialinclusionandintegratingconsumerempowermentandprotection,particularlythroughtheestablishmentoftheGPFIsubgroupfocusedonFinancialConsumerProtectionandFinancialLiteracy. WeendorsetheextensionoftheG20BasicSetintoamoreholisticsetoftheG20FinancialInclusionIndicators,therebyenablingmoreinformedfinancialinclusiontargetsettingandmonitoring. Weacknowledgethesupportfromtheimplementingpartners,includingtheAllianceforFinancialInclusion(AFI),ConsultativeGroup to AssistthePoor(CGAP),IFC,OECDandtheWorldBank. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  41. P age |41 WeendorsetherecommendationslaidoutintheGPFI’sreport,annexedtothisDeclaration,andcommittofurtherpursuetheseeffortsundertheAustralianPresidency. WewelcomethediscussionsoftheAFImemberstoestablishtheorganizationasanindependentinternational institution. Recognizingthekeyroleofsmall-andmedium-sizeenterprises(SMEs)forpromotinggrowth,jobcreationandpovertyreduction,we welcometheprogressmadeatthecountryleveltoaddressthespecificchallengesin accesstofinancefacedbySMEsthroughtheimplementationoftheSME FinanceChallengeandtheSMEfinanceInitiativeaswellasthesupportforpeerlearningthroughtheSMEFinanceCompactincooperationwiththeWorkingGrouponSMEFinanceoftheAFI. AstheSMEfinancegapremainslargeworldwide,wecallupontheIFI/DFIs to furtherimprovefinancialmarketinfrastructureandtosupportthedevelopmentofinnovativetoolstoaddresstheSMEsfinancechallengesandconstraints. Wewelcomepracticaltoolsto measurefinancialliteracyandevaluatefinancialeducationprograms,developedbytheOECD/InternationalNetworkforFinancialEducation(INFE)andtheWorldBankGroup,supporttheirwidespreaduseincountriesalongwithinstrumentstomeasureyouthfinancialliteracysuchastheProgrammeforInternationalStudentAssessment(PISA). Wealsolookforward to thedevelopmentofinternationalcorecompetenciesframeworksforadultsandyouthonfinancialliteracybytheOECD/INFEbyournextSummit. Wewelcomeprogressreportsonbarriersforwomenandyouthinfinancialinclusionandeducationpreparedby theOECD/INFEandtheWorldBankGroupandendorsetheOECD/INFEpolicyguidanceonaddressingwomenandgirls’needsforfinancialeducation. Weendorsetherecommendationsoftheprogressreportonwomenand finance,includingthattheGPFI,theOECDandtheWorldBankGroup InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  42. P age |42 • conductastocktakingofpromisingandsuccessful initiatives to enhancewomen'sfinancialinclusion. • WewelcometheG20Russia’sPresidencyandtheOECDpublicationon nationalstrategiesforfinancialeducationandlookforwardtothedevelopmentbytheOECD/INFEofaPolicy HandbookontheImplementationofNationalStrategiesforFinancialEducationbyournextSummit. • WesupporttheworkdonebytheG20/OECDTaskForceon FinancialConsumerProtectiononthefirstsetofeffectiveapproachestosupport theimplementationoftheG20High-LevelPrinciplesonFinancialConsumerProtectionandlookforwardtotheirreportonotherprinciplesin2014. • WetakenoteoftheformalizationprocessoftheFinCoNetandlookforwardtoitsconclusion. • PromotingDevelopmentforAll • 81.Supportingstrong,sustainable,inclusiveandresilientgrowthand narrowingthedevelopmentgapremaincriticaltoouroverallobjectiveforjobsandgrowth.Inthisregard,wewelcometheprogresswithintheforum achievedthisyear,in particularon: • FoodSecurity:Support to theSecureNutritionKnowledgePlatform,exchangeofbestpracticesthroughtheseminaron“FoodSecuritythroughSocialSafetyNetsandRisk Management”,andconveningthesecondG20MeetingofAgriculturalChiefScientists,alongwithitsongoingworktoidentifyglobalresearchprioritiesandtargetsandsupportresults-basedagriculturalresearchin2014. • Infrastructure:CompletionoftheAssessmentofProject PreparationFacilities(PPFs)forInfrastructureinAfrica;a toolkitonUrbanMassTransportationInfrastructureProjectsinMediumandLargeCitiesbytheWorldBankandtheADB;andapublic-privatepartnerships(PPP)sourcebookbytheWorldBank,IDBandADB,andprogressinimplementingtherecommendationsoftheHighLevelPanelonInfrastructure. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  43. P age |43 • FinancialInclusion:EnhancedcoherencewiththeG20financetrackthroughtheGlobalPartnershipforFinancialInclusion(GPFI)topursueefforts tostrengthenfinancialinclusionincludingworktofurtherreducingtheglobalaveragecostoftransferringremittancesto5%includingthroughinnovativeresult-basedmechanisms,toenhancefinancialliteracyandconsumerprotectionforthepoorandtofosteraccess to financeforinvestment,forSMEsforgrowth,jobcreationand povertyreduction;andtogetherwiththeIFClaunchingtheWomenFinanceHub. • HumanResourceDevelopment:Launchofaglobalpublic-privateknowledgesharingplatformonskillsforemploymentandthedevelopmentofnationalactionsplansonskillsforemploymentinLICsandofadatabaseonskillsindicators. • InclusiveGreenGrowth:Furtherdevelopment,disseminationandimplementationofthenon-prescriptive,voluntarytoolkitofpolicyoptionsfor inclusivegreengrowthinthecontextofsustainabledevelopment, includingaworkshopwithdevelopingcountries,andinitiationoftheG20DialoguePlatformonInclusiveGreenInvestmentsforsustainabledevelopmentandpovertyeradication. • DomesticResourceMobilization:Continuedworkon strengtheningtaxadministrationsindevelopingcountries,particularlyLIC’s,throughbothbilateralandmultilateralprograms,suchastheworkoftheOECDandG20membersonBEPS,automaticexchangeofinformation,theGlobalForumonTransparencyandExchangeofInformationforTaxPurposesand“TaxInspectorswithoutBorders”andtheexpansionoftheworkoftheWorldBankGroupandtheIMFtosupportdevelopingcountries’abilitytoraisedomesticresources. • 82.Weacknowledgethatfoodsecurityandnutritionwillremaina toppriorityin ouragenda. • We recognizetheimportanceofboostingagriculturalproductivity,investmentandtrade to strengthentheglobalfoodsystemtopromoteeconomicgrowthandjobcreation. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  44. P age |44 Weencourageallongoingeffortsintheagriculturalsectortofurtherreducehunger,under-nutritionandmalnutrition,throughincreased coordinationintheG20topromotetheidentificationandimplementation ofeffectiveactionsinsupportofproductionandproductivitygrowthaswellasenhancementoffoodsecurityandnutritionforvulnerablepopulationthrough,amongothers,nutritionsensitivepoliciesandcomprehensivesocialprotectionsystems,withparticularemphasisonlow incomecountries. WesupportdiscussionsintheWTOtorespond to legitimatefoodsecurityconcerns,withoutdistortingtrade,includingthoserelatedtocarefullytargetedpoliciestoprotectvulnerablepopulations. WerecognizethattheagriculturalmarketsituationneedscloserattentionandthattheAgriculturalMarketInformationSystem(AMIS)isgeneratingbettertransparencyandstillneedsmoreefforts tobefullyimplemented. Wereaffirmourdetermination to implementallpreviousG20commitmentsandexisting initiativesincludingthatstatedintheActionPlanonFoodPriceVolatilityandAgriculturewhichthe G20endorsedin2011. WewelcometheSaintPetersburgAccountability ReportonG20DevelopmentCommitments,whichsetsouttheprogress achievedsinceweadoptedthe2010SeoulMulti-YearActionPlanonDevelopment(MYAP)(Annex). Thisreportdemonstratesthatmanyofourdevelopmentcommitmentshavenowbeenimplementedandidentifieslessonslearnedandithighlightsthesuccessesachieved. TheAccountabilityReportunderlinestheimportanceofcontinuedmonitoringandidentifiesareaswherewemustcontinue toworkandopportunities to strengthenandstreamlinetheG20developmentagenda. In thisspirit,weendorsetheSaint PetersburgDevelopmentOutlook,whichstatesourcorepriorities, newinitiativesandongoingcommitments(Annex). InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  45. P age |45 • Buildingonthefoundationofthe2010SeoulDevelopmentConsensusforSharedGrowth,theOutlookframes theapproachtoourfuturework. • WeasktheDevelopmentWorkingGroup to focusonconcreteactionsunderthecoreprioritiesoffoodsecurity,financialinclusionandremittances,infrastructure,humanresourcedevelopmentanddomesticresourcemobilization,andtodeliverspecificoutcomesattheBrisbanesummit. • Wecommittoimproveworkingpracticesformoreeffectiveoutcomesby: • concentratingonfewerkeyareaswhereactionandreformremainmostcriticaltoensure inclusiveandsustainablegrowthindevelopingcountries; • enhancingpolicycoordinationacrossdifferentG20workstreamsin • order to ensuregreaterimpactondevelopingcountries; • implementingaforwardaccountabilityprocesstoimprovemonitoringandcoordination,andensuregreatertransparencyofourwork; • continuingto expandengagementandpartnershipswithstakeholders,includingnon-G20countries(especiallyLICs),internationalorganizations,theprivatesectorandcivilsociety; • ensuringflexibleapproachestorespondto newprioritiesand circumstances. 85.Wewelcomethesubstantialprogresstowards achievingtheMillenniumDevelopmentGoals(MDGs)since2000andthesuccessingalvanizingglobalaction to reachspecifictargetsglobally,aswellasin individualcountries,particularlyin eradicatingextremepovertyand promotingdevelopment. However,theprospectsforachievingalloftheMDGsdiffersharplyacrossandwithincountriesandregions. Weremaincommittedtoacceleratingprogresstowards achievingthe MDGs,particularlythroughtheimplementationofourdevelopment InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  46. P age |46 agendaandourfocusonpromotingstrong,sustainable,inclusiveand resilientgrowth. WesupporttheongoingeffortsintheUNfortheelaborationofthepost-2015developmentagenda. Wecommit toparticipateactivelyinthisprocessandengageinthediscussiononthedirectionofthenewframeworkanditskeyprinciplesandideasandeffectivelycontributetothetimelyconclusionoftheprocess. Thefinaloutcomewillbedeterminedthroughanintergovernmentalprocessinwhichwewillallparticipate,butmuchpreparatoryworkisstillunderway. WewelcomethecontributionofthereportpreparedbytheHigh-LevelPanelofEminentPersonsonthePost-2015DevelopmentAgenda,whichsetsoutsomeillustrativegoals WealsowelcometheongoingworkoftheUNGeneralAssemblyOpenWorkingGrouponSustainableDevelopmentGoalsandIntergovernmentalCommitteeofExpertsonSustainableDevelopmentFinancing. Westressthecrucial importanceofcollective action,includinginternationaldevelopmentcooperation,basedontheprinciplesoutlinedintheMillenniumDeclaration,the2012Rio+20outcomedocument“TheFutureWeWant”,theIstanbulDeclarationandProgrammeofActionoftheFourthUNConferenceonLeastDevelopedCountriesandtheoutcomesofotherrelevantUNConferencesandSummitsintheeconomic,socialandenvironmentalfields. Wecallforanagreementonanintegratedpost-2015developmentagendawithconcise, implementableandmeasurablegoalstaking intoaccountdifferentnationalrealitiesandlevelsofdevelopmentandrespectingnationalpoliciesandpriorities,focusedbothontheeradicationofextremepoverty,promotingdevelopmentandonbalancingtheenvironmental,economicandsocialdimensionsofsustainabledevelopment. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  47. P age |47 Wecommit to ensurethatG20 activitiesbeyond2015arecoherentwiththenewdevelopmentframework. Toimproverapidandeffectiveresponsestotheoutbreakofnewdiseasesthatthreatenhumanlife anddisrupteconomic activity,wecalloncountries to strengthencompliancewiththeWorldHealthOrganization’sInternationalHealthRegulations. WeacknowledgetheprogressalreadymadebyG20membersonduty-freeandquota-free(DFQF)marketaccessfortheLDCsproducts. SustainableEnergyPolicyandResilienceofGlobalCommodityMarkets Accesstoenergyisakeyfactorto achievebetterqualityoflife andtoimproveglobaleconomicperformance. Accesstoreliableandaffordableenergyisparticularlycriticalto thedevelopmentagenda,povertyeradicationandsocialinclusion. Transparent,well-functioning,reliableenergymarketsandsufficientinvestmentareneededtoboosteconomicgrowth,jobcreationandsustainabledevelopment. Topromotemarkettransparencyandefficiency,wecommittostrengthenJointOrganizationsDataInitiative(JODI)-Oilbyensuringgreatervisibility,morecompleteandcomprehensivedata,enhancedaccessandimprovedavailability,andbymaintainingsupportforcapacitybuilding. WelookforwardtothelaunchofJODI-Gasatearliestdatepossible. WenotethesecondreportpreparedbytheInternationalEnergyAgency(IEA),theInternationalEnergyForum(IEF)andtheOrganizationofthePetroleumExportingCountries(OPEC)inMay2013onpracticalstepstoincreasetransparencyin internationalgasandcoalmarkets. WeasktheIEF to comebackwithareportonprogressintheseareas beforethenextG20MinistersofFinanceandCentralBank InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  48. P age |48 GovernorsmeetinginOctober. WewelcometheReportonenergy-relatedissuesincludingonG20worktofacilitatebetterfunctioningofphysicalandfinancialcommoditymarkets. WewelcomeFinanceministers’commitment totake actionsonPRAsassetoutintheirCommuniqueofJuly20,2013withaviewtoimprovetheirfunctioningthroughtransparencyandregulationasappropriate,andwouldwelcomeafurtherupdatein 2014. WealsocallonFinanceministerstomonitoronaregularbasistheproperimplementationofIOSCO’sprinciplesfortheregulationandsupervisiononcommodityderivativesmarketsandencouragebroaderpublishingandunrestricted accessto aggregatedopeninterestdata. Wewelcomeeffortsaimedatpromotingsustainabledevelopment,energyefficiency,inclusivegreengrowthandcleanenergy technologiesandenergysecurityforthelongtermprosperityandwellbeingofcurrentandfuturegenerationsinourcountries. Wewillcontinueincooperationwithinternationalorganisationssharingnationalexperiencesandcasestudiesregardingsustainabledevelopment,cleanenergy,andenergyefficiencyaswellasdevelopment,deploymentandbroaderapplicationofrelatedtechnologiesandwilltakeforwardwork,onavoluntarybasis,oncorrespondingpolicy optionsandtechnologies. WetakenoteofthenewWorldBankreport‘TowardaSustainableEnergyFutureforAll’,whichaims topromoteaccess to reliableandaffordableenergyindevelopingcountriesandrecognisetheimportanceofthesustainableandresponsibleproductionanduseofmodernbioenergyandtheroleplayedbytheGlobalBioenergyPartnership(GBEP)in thisregard. Wereaffirmourcommitmenttorationaliseandphaseoutinefficientfossilfuelsubsidiesthatencouragewastefulconsumptionoverthemediumtermwhilebeingconsciousofnecessitytoprovidetargeted supportforthepoorest. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  49. P age |49 WewelcometheeffortsunderwayinsomeG20countriesasdescribedinthecountryprogressreports. Wewelcomethedevelopmentofamethodologyforavoluntarypeerreviewprocessandtheinitiationofcountry-ownedpeerreviewsandweencouragebroadvoluntaryparticipationinreviewsasavaluablemeansofenhancedtransparencyandaccountability. WeaskFinanceMinisterstoreportbackbythenextSummitonoutcomesfromthefirstroundsofvoluntarypeerreviews. Recognisingtheimportanceofprovidingthoseinneedwithessentialenergyservices,weask FinanceMinisters to consider,in conjunctionwiththerelevantinternationalinstitutions,policyoptionsfordesigningtransitionalpoliciesincludingstrengtheningsocialsafetynets to ensureaccessforthemostvulnerable. Sizableinvestment,includingfromprivatesources,willbeneededintheG20andothereconomiesinenergyinfrastructureintheyears ahead to supportglobalgrowthanddevelopment. Itisourcommoninteresttoassessexistingobstaclesandidentifyopportunities to facilitatemoreinvestmentintomoresmartand low-carbonenergyinfrastructure,particularly in clean andsustainableelectricityinfrastructurewherefeasible. In thisregardweencourageacloserengagementofprivatesectorandmultilateraldevelopmentbankswiththeG20EnergySustainability WorkingGroup(ESWG)andcallforadialogue tobelaunchedonitsbasisin 2014thatwillbring interestedpublicsector,marketplayersandinternationalorganizationstogethertodiscussthefactorshinderingenergyinvestment,including in cleanandenergyefficienttechnologiesandtoscopepossiblemeasuresneededtopromotesustainable,affordable,efficientandsecureenergysupply. Regulationamongotherpolicy levers canplayanimportantroleincreatingapropercontextfor investment. Notingthatregulatoryrolesdifferfromcountrytocountryandthat regulationremainsacountry-ledprocess,butinsome casesisshared InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

  50. P age |50 withinregionalintegrationspace,wewelcomethedialoguebetweeninterestedG20national powersectorregulatorssupportedbyregulatoryassociationsandinternationalorganisations,andtakenoteofthestatementtheyhaveprovidedonsoundregulationandpromotinginvestmentinenergyinfrastructureagreedattheG20OutreachEnergyRegulators RoundTablein Kazan. In thecontextofourefforts topromoteinvestmentinenergyinfrastructure,notablyin clean,affordableandsustainableenergy,andinorder to engageallinterestedparties,weencourageinterestedregulatorstocontinuetheirdialogueandasktheESWGtotakenoteofthisdialogue. Manycountriesaretryingto improvetheirenergymixanduse,suchasbypromotingrenewableand/ornuclearenergy. Nuclearpowerisalow-carbonoption,butitis capitalintensiveandcomeswithresponsibilitiesfornuclearsafety,securityandsafeguards/nonproliferation. G20countries,whethernascentorestablishednuclearpowerproducersshouldstriveforthehighestpossiblelevelofnuclearsafety,tofosterrobustnuclearsafetyandnuclearsecurityculturesand,ascalledforintheInternationalAtomicEnergyAgency(IAEA)ActionPlanonNuclearSafety,weencourage multilateralcooperation towardsachievingaglobalnuclearliabilityregime. Weappreciatetheprogress achievedsincetheestablishmentoftheG20GlobalMarineEnvironmentProtection(GMEP)InitiativeandwelcomethelaunchoftheGMEP InitiativewebsiteasakeyelementoftheGMEPMechanismforthevoluntaryexchangeofnationalbestpracticestoprotectthemarineenvironment,inparticulartopreventaccidentsrelatedtooffshore oilandgasexplorationanddevelopment,aswellasmarinetransportation,and todealwiththeirconsequences. WeencourageparticipantstomakefulluseofthewebsiteandsharerelevantinformationundertheauspicesoftheG20in cooperationwithrelevantinternationalorganizationsin accordancewiththeGMEP mandates. InternationalAssociationofRiskandComplianceProfessionals(IARCP)www.risk-compliance-association.com

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