With integrating markets and globalisation, the world financial system has become huge, global and complex. We, the regulators, and the supervisors have big challenges ahead. To properly assess the risks, to cooperate at a global level, to understand a fast changing landscape. All of this without impeding innovation and the sound growth of capital markets. One of our tools is the regulatory dialogues on financial services. With the US, Japan, China, Russia and India.

We are pragmatic; we want to solve problems – not to discuss endlessly with our counterparts with inflexible procedures. To address real regulatory issues creating business problems. To consult the industry. To fight legal nightmares. We believe in competition and a level playing field for companies, but not in spillover regulation nor in over regulation.

We have therefore had three main objectives in our dialogues.

First, demonstrating that the European approach to regulation works. Merging 27 rule books into one is a good experience. Finding agreements with 27 Member states and the European Parliament demands patience and courage. But this generally leads to carefully crafted legislation. We want to show the rest of the world this and why we think it works.

Second, striving for a level playing field for all companies. International competition and open markets are driving modernisation. They foster growth and innovation. I have always been very vocal with Member States and national regulators when protectionist tendencies spring up. It is the same for third countries. Protectionism is not for 21st century regulators.

Third, convergence towards international standards. Carefully crafted, they are a powerful tool to extract the best from globalisation. Take, for example, IFRS accounting standards. Soon we hope that they will be accepted in every significant financial centre: the EU, US, China and Japan. One set of accounting rules for being listed in the world's best financial markets. Look also at Basel II. This risk based approach is also on the way to becoming a global standard. And, as I have already mentioned, we have tabled our Solvency II proposals for the insurance industry.

The Commission welcomes recent announcements of the IASCF/IASB and the steps taken in order to address governance concerns. In particular, the Commission welcomes measures taken to establish a more effective interface between the Trustees and the IASB, and to put in place a framework to provide impact assessment studies for new standards, the commitment to provide appropriate feedback to comment letters, abolition of the IFRIC agenda Committee, reinforcement of administrative capacities of IFRIC and ongoing analysis of efficiency of SAC.

However, it remains to be seen how the IASCF/IASB will apply these changes in practice, in particular on impact assessment, feedback to comment letters and on SAC, so as to guarantee proper due process and accountability towards stakeholders. It is also very important that the comments from the Roundtable on consistent application of IFRS are taken into account in work of the IASB on standards and interpretations.

The Commission also considers that in addition to ex-ante impact assessments, it is equally important that the IASB makes a proper ex post analysis of already adopted standards and interpretations to determine whether their functioning in practice is appropriate and whether they provide relevant information to users.

As regards the legitimacy of the endorsement process for IFRSs and IFRICs in the EU, it is important that Member States and the European Parliament are informed about intention of the IASB to adopt new standards at early stages. The Commission therefore invites members of the Board to appear regularly (2 or 3 times a year) before Member States and the European Parliament to present standards, which are on its work programme.

As concerns implementation of new funding scheme, the Commission is encouraged that the collection of funding from private sources is proceeding well. Nonetheless, the Commission urges those Member States which have not acted yet to do so rapidly and underlines the importance of proper diversification of sources and full participation of all interested jurisdictions.