Views on improving the integrity of global capital markets
18 December 2015

Systemic Risk Council Taps Ex-BoE Deputy Governor Tucker to Chair Global Group

Posted In: Systemic Risk
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In 2012, CFA Institute had the vision to form the Systemic Risk Council (SRC) — a collaborative, private-sector effort to address systemic risk. At its inception, the SRC issued a “call to action” challenging US regulators to address the forces that caused the financial crisis and continue to threaten the global capital markets.

Over the years, the council has enjoyed the input from a number of luminaries, who brought with them a range of experience in regulatory and policy matters. Sheila Bair, who led the Federal Deposit Insurance Corporation (FDIC) during the financial crisis, served as its original chair, joined by former Senator Bill Bradley, Brooksley Born, a former chairwoman of the Commodity Futures Trading Commission (CFTC), and Paul O’Neill, the first Treasury secretary under George W. Bush. Paul Volcker, former Federal Reserve chair, continues to serve as senior adviser to the SRC.

Through the work of this council, CFA Institute is able to support work on the most consequential issues affecting the stability and resilience of global markets. Indeed, recently we saw SRC recommendations on how to rein in systemic risk among banks — specifically requiring larger, nonrisk-weighted capital buffers — make their way into legislation following months of SRC commentary and outreach. The SRC also weighed in with the US Financial Stability Oversight Council on potential systemic risks posed by asset management activities, urging that the focus be on products and activities rather than an earlier concentration on asset management entities. Originally focused on US-domestic policies, the SRC addressed a wide range of notable issues and proposed regulations.

Recognizing that the issue of systemic risk is hardly confined to the United States, in 2015 the SRC held its first European meeting in Brussels in an effort to expand the council’s scope, and appointed five high-profile individuals from the EU financial policy community to its ranks, including: Sharon Bowles, former member of European Parliament and ex-chair of the Parliament’s Economic and Monetary Affairs Committee, and Lord John McFall, former chair of the House of Commons Treasury Committee.

We’ve taken another important step to “globalize” the SRC with the appointment of Sir Paul Tucker as chair of the SRC. Currently a fellow at the John F. Kennedy School of Government at Harvard University, Sir Paul formerly served as deputy governor at the Bank of England and as a member of the G20 Financial Stability Board’s Steering Group.

“The Systemic Risk Council has provided a thoughtful and constructive voice for regulatory reform in the interests of ensuring that we have a stable financial system that can serve the economy’s needs,” Tucker commented at the time of his appointment. “I look forward to serving the Council and working with colleagues to continue the important work that Sheila and the Council have undertaken since 2012.”

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Image credit: Jarosova

About the Author(s)
Kurt Schacht, JD, CFA

Kurt Schacht, JD, CFA, is the Senior Head, Advocacy Advisor, Capital Markets Policy at CFA Institute, where he oversees advocacy efforts and the development, maintenance, and promotion of the highest ethical standards of practice for the global investment management industry.

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