LONDON – An indication of how far the hedge fund industry has moved in reconciling itself to a more regulated financial world is evident in a new policy position paper from the Alternative Investment Management Association (AIMA). This paper, issued in early September by the Association, which represents the industry worldwide, adopts an overtly progressive approach to the regulation of capital markets, and is promoted by AIMA as such.

BRASILIA/DOHA – The central bank of Brazil announced in August that the Basel III capital adequacy framework will be adopted in its national financial system beginning October. The new international standard roughly triples the minimum amount of equity capital that banks around the world must hold to help them to withstand financial crises such as that of 2007-09. Under the new framework, the minimum equity capital ratio is set at 7%.

BASEL – “Considerable progress” has been made in the implementation of the Basel III capital framework over recent months, say international regulators in their latest status report to leaders of the Group of 20 leading economies. Of the 27 countries that comprise the Basel Committee, which drafted the new capital standard for banks, some 25 have now issued the final set of regulations necessary for implementation. The remaining two countries, Indonesia and Turkey, have draft rules in place and are making efforts to finalise them. Most recently, the European Union and the US issued final regulations in June and July, respectively.

BASEL – Insurance supervisors should require mortgage insurers to build long-term capital buffers and reserves during the troughs of the underwriting cycle to cover claims during its peak and so avoid the mistakes of the past, global regulators said in August.

BASEL - Good progress continues to be made, but more work needs to be done by national authorities and firms to ensure effective implementation of sound pay and reward policies that lead to more prudent risk-taking behaviour in financial firms, global regulators said in August.

BRUSSELS – The saga of the European Union’s embattled Solvency II insurance regulation project continued with a key European Parliament vote now pushed back five months to March 2014.

BASEL – Global regulators have set up a high-level Official Sector Steering Group (OSGG) of regulators and central banks to take work forward to promote consistency in the standards applying to widely-used financial market benchmarks.

BRUSSELS – A weak macro-economic outlook, protracted low interest rates, financial sector fragmentation and reduced confidence in balance sheet valuations and risk disclosures are the key cross-sectoral risks threatening the stability of the financial system, according to the European Union’s banking, insurance and securities markets regulators.

Tackling the potential failure of a non-bank, such as an insurer or infrastructure firm, is now in the regulatory spotlight By David Keefe

After much progress, Islamic finance needs the spur of fresh ideas; Basel III liquidity rules present a particular problem