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9 May 1998
TEN KEY PRINCIPLES FOR INTERNATIONAL FINANCIAL INFORMATION EXCHANGE
Ten Key Principles for information exchange to improve financial stability through greater international cooperation were announced by G7 Finance Ministers meeting in London today.
Commenting on the meeting, Chancellor of the Exchequer Gordon Brown said :
"Given the UK's past experiences with BCCI and Barings, the UK has been a longstanding advocate of improving co-operation between supervisors of internationally active financial institutions.
"Today's report by financial experts from all G7 countries - in a group chaired by the UK - marks a significant step towards improving financial stability. The Ten Key Principles which they have developed establishes a clear framework for international cooperation and sets standards to which G7 Ministers believe all countries should aspire and which we shall promote throughout the world.
"Recent events in Asia have highlighted the need for such cooperation and emphasised its urgency. So we are especially pleased that the G7 has made so much progress on this issue since we met in Denver a year ago."
The Ten Key Principles set out in the report from G7 Ministers to heads of government cover :
- authorisation to share supervisory information with foreign supervisors
- the sharing of information by supervisors from different sectors of financial services
- cooperation in identifying and monitoring the use of management and information systems, and controls, by internationally active firms
- the sharing of objective information of supervisory interest about individuals such as owners, shareholders, directors, managers or employees of supervised firms
- information sharing between exchanges
- confidentiality of shared information
- the use of formal agreements and written requests for information exchange
- reciprocity requirements
- the use of information for law enforcement in cases which further supervisory purposes
- the removal of laws preventing supervisory information exchange.
NOTES TO EDITORS
1. The G7 Finance Ministers today published "Financial Stability: Supervision of Global Financial Institutions", a report to heads of government. It summarises the work of a G7 financial experts group asked to look at the improving cooperation between supervisors of internationally active groups. It also covers the work of the Basle Committee on Banking Supervision, IOSCO, and the IAIS in this area, both individually and combined under the banner of the Joint Forum. 2. Media copies of the report are available from HMT Press Office on 0207 270 5243.