16 April 2012

IFAC: Private Sector Taskforce of Regulated Professions and Industries updates recommendations to the G20

The Private Sector Taskforce (PSTF) strongly encourages the G20 to implement all of the 15 recommendations presented in its report 'Regulatory Convergence in Financial Professions and Industries' (”2011 Report”) with a strong emphasis on its first two recommendations, encouraging the G20 to:

• continue to focus on regulatory convergence in the financial sector, ensuring that G20 nations work together to identify and narrow gaps in regulatory practice; and
• discourage nations from implementing unilateral national regulatory reforms that are inconsistent with international standards and that widen—rather than narrow—the convergence gap.

In support of these recommendations, the update provides a discussion of matters that have arisen since the report was issued―including examples of where regulatory convergence has moved forward, such as the introduction of Legal Entity Identifiers (LEI), adoption of IFRS, and the adoption of ISAs. The update also notes examples where international regulatory arrangements have become more fragmented.

The update includes additional recommendations regarding public sector financial management and reporting, transparency and accountability. Over the last year this has been brought into greater focus as a consequence of the sovereign debt crisis, and growing global financial instability. Other important matters are identified which the taskforce suggests will require closer attention by the G20 in 2013 and beyond.

“It is imperative the G20 follow through on the PSTF's initial 15 recommendations outlined in the 2011 report. It is equally important the G20 evaluate and respond to crucial matters that have become even more critical since the report was issued, such as the sovereign debt crisis. The taskforce and its member organisations would be pleased to assist the G-20 in any way they can”, said IFAC Chief Executive Officer, Ian Ball.

Press release

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