Underlying the credit crisis was a fundamental failure at Board level. ACCA believes good corporate governance should headline the G20’s financial agenda.
This paper draws on areas including tax, finance and corporate governance to arrive at a series of recommendations to policy makers around the world on areas including the developing role of the G20, accounting standards, financial sector reform, and strong, sustainable and balanced growth.
Several areas in which further action is needed:
- The G20 should turn its stated commitment to integrity in financial institutions into reality, by encouraging moves to instil ethical business codes and better risk management functions in the financial and corporate sectors
- The G20 must broach the question of ‘too big to fail' financial institutions, and consider as a serious option the separation of retail and investment banking
- The G20 should now take concrete steps towards the implementation of IFRS (International Financial Reporting Standards), and ensure accounting standards are free from undue political influence
- Sustainability and tackling climate change should be embedded in the G20's agenda, and ingrained in business practice through the use of a global carbon reporting standard