The Communiqué and Final Declaration that followed the Cannes Summit highlighted:

  • the agreement on comprehensive measures to address the "too-big-to-fail" problem and the work of the Financial Stability Board (FSB) (see below). G20 also wants FSB and the Basel Committee on Banking Supervision (Basel) to report by April 2012 on how to extend the Global Systemically Important Financial Institution (G-SIFI) regime to domestically systemically important banks and, in addition to the work on insurers (see below), to prepare methodologies to identify systemically important non-bank entities by the end of 2012. G20 stressed both the importance of monitoring the implementation of commitments and the importance of the reform of FSB to give it additional powers.  It urged all jurisdictions to comply with international standards on tax, prudential and anti-money laundering and corruption requirements;
  • the need to meet commitments on regulatory reform standards, including:
  • full and consistent implementation across jurisdictions of the Basel II risk-based framework, of the Basel II-5 additional requirements on market activities and securitisation by the end of 2011 and of the Basel III capital and liquidity standards within the appropriate timescales;
  • reforming OTC derivatives markets so all standardised OTC contracts are traded on exchanges or electronic platforms and centrally cleared by the end of 2012 (and any non-centrally cleared contracts are subject to higher capital requirements), and reported to trade repositories. There must be no loopholes, so there must be better international cooperation. FSB, Basel and the International Organization of Securities Commissions (IOSCO) should work together to identify principles on information that regulators should have access to and on standards for non-centrally cleared OTC derivatives;
  • implementing FSB principles on remuneration practices to discourage practices that lead to excessive risk-taking. FSB should continue its monitoring and public reporting exercise and consider "level playing field" concerns;
  • reducing reliance on external credit ratings and encouraging jurisdictions to meet FSB standards;
  • intensifying monitoring of reforms, with implementation progress reported to the public; and
  • filling regulatory gaps, such as on "bank-like activities", market integrity, commodity markets and consumer protection;
  • the work of IOSCO to improve regulation and supervision of commodity derivatives markets. Market regulators should have effective powers to prevent market abuse, including formal position management powers; and
  • progress in fighting corruption. G20 called for a strong international legislative framework, national measures to prevent and combat corruption and prevent bribery, and stronger international and public and private sector cooperation. It supports the work of the United Nations Convention against Corruption and the Financial Action Task Force.

(Source: G20 Cannes Summit Final Declaration)