Fragmented Financial Regulation: A $780 Billion Tax on the Global Economy
April 11, 2018
A $780 Billion Tax on the Global Economy
It’s time to fix a costly fracture in the global economy.
IFAC (International Federation of Accountants) and Business at the OECD (BIAC) surveyed over 250 regulatory and compliance leaders from major global financial institutions to estimate that a piecemeal approach to financial sector regulation costs the global economy $780 billion USD a year.
What is regulatory divergence? In short: inconsistent regulation between different jurisdictions. It’s an especially big issue in the financial sector where interconnectedness and the free flow of capital is critical. Regulatory divergence can often burden—not benefit—the economies involved.
We believe more effective international regulatory cooperation and harmonization should be a policy-making priority.