Page 58 - FINAL CFA I SLIDES JUNE 2019 DAY 6

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:
International Organisation of Securities
National Regulatory Authorities:
• 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.