IFAC report on global regulation

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04 Feb 2016

The International Federation of Accountants (IFAC) has issued a report calling for political leaders and governments around the world to follow ten principles for consistent, high-quality global regulation, to aid global economic growth.

While business and finance are increasingly global, the report warns that important regulation is not. Instead, it is frequently focused on national interests, which can create barriers and impediments to inclusive growth and jeopardise global financial stability. It states:

In the years since the financial crisis, regulation — and, as a result, the work required to manage global investment, finance, and financial reporting — has increased exponentially. Recent reforms [...] have often taken a prescriptive approach, focusing on detailed procedures, processes, and compliance rather than outcomes — and uniformly applying sometimes inappropriate solutions to a broad range of companies.

The ten principles for high quality financial regulation state that regulation needs to be evidence-based, proportionate, appropriately resourced, collaboratively developed/implemented, consistent, subject to active oversight, systematically reviewed, have clear objectives, and be properly targeted and enforced to address intended issues.

Please click to access the report From Crisis to Confidence: A Call for Consistent, High-Quality Global Regulation and a corresponding press release on the IFAC website.

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