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.


FASB Approves New Accounting Standards

As reported by MarketWatch, the Financial Accounting Standards Board (FASB) has approved additional flexibility of the mark-to-market rule, allowing auditors to use significant judgment with respect to the valuation of illiquid assets, which could temper the need for companies to write down such securities. The revised rule also requires increased disclosure about valuation methods.