Executive Committee – IFRSF Trustees' strategy review
Tom Seidenstein gave a summary of the comments received on the Trustees' strategy review consultation document. 94 comment letters had been received, many from Europe, but large tranches from other regions as well. Thus, the Trustees had a broad geographical basis on which to base its decisions on next steps.
There was strong support (80%+) for the current focus of the IASB's activities (investors in capital markets), although there was strong support for involving regulatory/ prudential interests explicitly during the IASB's due process.
The three-tier structure of governance was also supported very strongly, although the Trustees were encouraged to have a more visible role, especially in oversight matters, such that they are seen to be effective. The Monitoring Board (expanded as proposed separately by the Monitoring Board) was sufficient to support legitimacy, provided it operated within clearly defined roles. Due process was an area of particular comment – especially with respect to the Trustees' oversight. David Sidwell noted that the comments received had already shaped the Due Process Oversight Committee's work and approach. On funding, there was support for developing a long-term viable solution that was public, proportionate and flexible.
Overall, there was a high degree of consistency among the comments, and the Trustees should be able to prepare their reform proposals quickly.
Robert Glauber (one of the acting co-Chairmen) stated that the Trustees' reform proposals would be published in April, with a comment period of about 90 days. There would be roundtable meetings in Japan, Hong Kong, New York and London. The Trustees would discuss the results of the exposure at their meeting in July. The Trustees wish to coordinate the next stage of the process with the Monitoring Board. He noted also that, because some aspects of the Monitoring Board's structure and governance are embedded in the IFRS Foundation's Constitution, the results of the Monitoring Board's review would trigger a public consultation on amendments to the Constitution.