The purpose of the Consultation Papers is to seek separate input from any party interested regarding (i) the Monitoring Group's preliminary proposals resulting from its assessment of the current governance structure, and (ii) the Public Interest Oversight Board's work programme for 2012 and beyond.
In the first of the two public consultation papers, the Monitoring Group (MG) has decided to consult publicly on the advisability of further reforms, building on and completing the effectiveness review that began in 2010 through a comprehensive governance review of the entire architecture currently in place.
In the second consultation paper, the PIOB consults on the review of its mission and medium and long-term strategy and explains the new oversight methodology developed and applied after the recommendations of the MG 2010 Review.
The Monitoring Group and the Public Interest Oversight Board may modify their preliminary conclusions or add practical implementation ideas to them in light of the comments received. The MG and the PIOB expect to draw their final conclusions by the end 2012.
Fernando Restoy, Monitoring Group Chairman, said: “Essentially, we have to make sure that the governance structure contributes to a clear public perception that the standard-setting work is sufficiently sound and compatible with the public interest. We see now an opportunity to ask market participants and other stakeholders if they envisage some concrete measures that could improve the independence, transparency and accountability to the public interest of the standard-setting activities. This exercise will lead to a more visible and legitimate organisation and to enhance confidence by market participants and public institutions, which seems to be a pre-requisite for a more global adoption of the international standards of audit, ethics and education.”
Eddy Wyneersch, PIOB Chairman, said: “Financial markets in 2012 are different from what they were before the 2008 global financial crisis. Auditors must be discriminating and sceptical, and standards must enable sound professional judgements and transparent opinions, promoting and demanding consistent application. With seven years of experience since its formation, the PIOB thinks it is now appropriate to explain how its oversight methods have evolved, and to consult on its mandate, its focus on the protection of the Public Interest through its approach to oversight, and its medium-term strategic objectives. The ultimate objective of this process is to increase audit quality and thus confidence in financial markets.”
© IOSCO
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article