In Washington in 2008, the G20 committed to fundamental reform of the global financial system. The objectives were to correct the fault lines that led to the global crisis and to build safer, more resilient sources of finance to serve better the needs of the real economy. The G20 called on the FSB to develop and co-ordinate a comprehensive framework of reforms. This letter reports on progress as we approach the Brisbane summit, which will mark the end of this phase of global financial reform. It makes four points.

  1. During the Australian G20 presidency, work remains on track to substantially complete the job of fixing the fault lines that underlay the crisis. 
  2. The support of Ministers and Governors is essential to meet the target of ending too big to fail for the Brisbane summit. 
  3. We are building a system that combines common international standards, consistent implementation and where appropriate deferral to each other's approaches. 
  4. As we move toward the conclusion of this phase of financial reform, the FSB will adjust focus, away from the design of standards to fix the fault lines that caused the crisis and towards new and constantly evolving risks and vulnerabilities.