Securities industry associations from across the globe are calling on the Financial Stability Board to proposed regulatory reforms promote open markets.

The Australian Financial Markets Association, the Investment Industry Association of Canada, the Japan Securities Dealers Association, the London Investment Banking Association, and the Securities Industry and Financial Markets Association released a statement Friday in advance of the inaugural meeting of the FSB.

The FSB emerged from the Financial Stability Forum in April, with an expanded membership and a broader mandate.

It will will hold its inaugural meeting in Basel, Switzerland on June 26-27.

At the meeting, the FSB will discuss its internal organization, current risks and challenges facing financial systems, progress in ongoing workstreams and the implementation of prior FSF and FSB recommendations.

“We welcome the establishment of the Financial Stability Board, strongly support its objectives, and look forward to the outcome of its first meeting on 26th June,” the associations said.

“The FSB’s work of facilitating the harmonization and understanding of regulatory reforms and standards across jurisdictions around the world will have a vital importance for participants in financial markets, and for economic recovery more generally.”

“It is critical that the FSB and its members ensure that such reforms are developed and implemented in a manner that promotes open markets and the free flow of capital,” the associations urged.

The associations are worried that efforts by national regulators could create barriers in the global marketplace.

“We are concerned that some recent regional and national regulatory proposals diverge in ways that could create distortions or other barriers in the global marketplace: in these instances, we encourage the FSB to foster, in line with the G20 mandate, the necessary changes to develop consistency with a well-founded global policy approach.”

IE