A global regulatory agenda

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19 Feb 2006

EC Internal Markets Commissioner Charlie McCreevy outlined (PDF 79k) in remarks before the Council on Foreign Relations in Washington.

He identified what he called the four A-B-C-D issues that are of concern with regard to the transatlantic capital market: Accounting, Basel II, Collateral and Deregistration. Regarding accounting, Mr. McCreevy said: "In my view, full convergence of standards cannot be a prerequisite for the elimination of the reconciliation requirement. Instead, we should make sure that our standards are understandable to investors on both sides of the Atlantic." More broadly, he spoke of the need for the EU and the US to lead the way worldwide, including in the area of standard setting:

Jointly, we have a window of opportunity to facilitate the smooth integration of China, India, Brazil and others on the world economic stage. The EU and the US should lead by example and show how open and competitive markets with sound standards of investor and consumer protection can deliver a thriving transatlantic financial market place. In accounting, in auditing, in our securities and other markets the EU and the US can make a special contribution to the emerging global regulatory system. If we cannot resolve our differences, what sort of example are we giving to the others? This is a question of mutual interest and leadership.

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