In the communiqué released at the end of the London summit on April 2, the Leaders of the Group of Twenty pledged to extend regulation and oversight to "all systemically important financial institutions, instruments and markets," stating that "[t]his will include, for the first time, systemically important hedge funds."
The leaders also vowed to deploy sanctions against "non cooperative jurisdictions, including tax havens," and declared that "[t]he era of banking secrecy is over." Concurrently with (and as noted by) the communiqué, the Organization for Economic Cooperation and Development published a list of countries assessed against the international standard for exchange of tax information.
The communiqué also announces the establishment of a new strengthened Financial Stability Board (FSB), to succeed the Financial Stability Forum (FSF) and to include current FSF members as well as all other G20 countries, Spain and the European Commission. The FSF was tasked with assessing vulnerabilities in the financial system, identifying and overseeing action needed to address them and promoting coordination among financial authorities. The FSB's expanded mandate additionally includes monitoring and advising on market developments and their implications for regulatory policy, monitoring and advising on best practice in meeting regulatory standards and undertaking joint strategic reviews of policy development.
The International Organization of Securities Commissions (IOSCO) welcomed the G20 communiqué, viewing it as an endorsement of its recent work to close regulatory gaps across financial securities markets.
Alternative Investment Management Association (AIMA) CEO Andrew Baker welcomed the communiqué's "commitment to financial stability," but cautioned against placing undue focus on hedge funds. Referencing the recent review of global banking regulation by Lord Turner, the Chairman of the Financial Services Authority, Baker noted that hedge funds in general are not today bank-like in their activities, and that their role in the recent crisis was marginal.
G20 Communique: available here (PDF)
FSB Establishment Press Release: available here (PDF)
IOSCO Statement: available here (PDF)
AIMA Statement: available here (HTML)