Thursday, April 2, 2009

G20 Leaders Pledge Action Against Tax Havens and "Systemically Important" Hedge Funds

The leaders of the G20 issued a statement today in which they pledged $1.1 trillion to strengthen global financial institutions and support a worldwide economic recovery. In addition to providing financial support, the leaders vowed to establish a Financial Stability Board to promote financial cooperation and concerted global action to address impending crises. Acknowledging the need to reshape the global financial regulatory landscape, G20 leaders intend to extend their regulatory reach to cover all "systemically important" financial institutions, instruments and markets, including hedge funds. The leaders also announced their commitment to sanction tax havens and other "non-cooperative" jurisdictions. Following the G20 statement, the OECD released a list of tax havens that could be targeted for sanctions.