Standard-setting bodies
- Accountants and auditors that establish financial reporting standard
- Two primary bodies are: FASB and IASB
Regulatory authorities
- Government agencies that have legal authority to enforce compliance
Desirable attributes of standard-setters:
- Observe high professional standards
- Adequate authority, resources, competencies to accomplish mission
- Clear and standard-setting processes
- Guide by well articulated framework
- Operate independently
- Not be compromised by special interests
- Decisions are made by public interest
Three objectives of International Organization of Securities Commissions financial market regulation
- Protect investors
- Ensure fairness, transparency, efficiency
- Reduce system risk
- Uniform financial regulations