Leadership

Better financial regulation will help economic recovery

24.06.2009
A senior international accountancy figure has called for better global financial regulation and stronger corporate governance practices in Ireland and overseas, as a means of supporting economic recovery.

Speaking at the launch today of the new corporate identity of Accounting Technicians Ireland, Ian Ball (pictured), CEO of the International Federation of Accountants (IFAC), said: “The difficulties that are facing banks and other financial institutions in Ireland and around the world stem, in significant part, from weaknesses in financial regulatory regimes in terms of detecting and managing systemic risks.”

According to Ball, IFAC, which is comprised of 157 accountancy organisations worldwide, had made submissions to the G20 Working Groups with recommendations on enhancing the transparency of financial institutions. The organisation also made specific recommendations on supporting the World Bank and other multilateral development banks in their efforts to help countries to improve their financial management capabilities and to strengthen their financial reporting infrastructures.

In addition to its recommendations on financial regulatory reform, IFAC has also called for the adoption of a single set of standards for accounting and financial reporting in the public and private sectors.

“The required upturn in our economic fortunes will depend on our having the appropriate regulatory and corporate governance structures in place. This is essential to increase confidence in our economy, among both multinational and local companies," said the Minister of State for Trade and Commerce, Billy Kelleher TD, who was also at the launch.

“Organisations such as Accounting Technicians Ireland have an important role to play in promoting necessary reforms among its members and the wider accounting and business sectors. Moves by IFAC and its constituent bodies, such as Accounting Technicians Ireland, to push for these reforms are to be welcomed.”

Pictured: Ian Ball, CEO of the International Federation of Accountants (IFAC)