Page 20 - FINAL CFA SLIDES DECEMBER 2018 DAY 7

Session Unit 6:
23. Financial Reporting Standards

LOS 23.b: Describe roles and desirable attributes of financial reporting standard-setting bodies and
regulatory authorities in establishing and enforcing reporting standards, and describe the role of the

International Organization of Securities Commissions. p 26.

Desirable attributes of standard-setters:

• Observe high professional standards.

• Have adequate authority, resources, and competencies to accomplish its mission.
• Have clear and consistent standard-setting processes.

• Guided by a well-articulated framework.

• Operate independently while still seeking input from stakeholders.
• Should not be compromised by special interests.

• Decisions are made in the public interest.
All belong to:

National Regulatory Authorities: International Organisation of Securities
• Securities and Exchange Commission (SEC) –USA Commission (IOSCO)

• Financial Conduct Authority (UK) (1) Protect investors;
• Financial Sector Conduct Authority (FSCA, RSA) (2) Ensure the fairness, efficiency, and
transparency of markets; and
(3) Reduce systemic risk

Because of the increasing globalization of securities markets, IOSCO has a goal of uniform

financial regulations across countries.