Today, the Organisation for Economic Co-operation and Development (OECD) announced that it has established a set of principals for effective and efficient financial regulation. The OECD’s recommendations and principals include:
- Identifying the attributes of a well-functioning financial system and communicating those attributes to the public;
- Increasing transparency of the operations of the financial system, including authority for governmental authorities to compel the collection and dissemination of data to ensure proper transparency;
- Monitoring of domestic and international financial system developments, macroeconomic trends, and emerging risks;
- Conducting market failure analysis to assess the efficiency of the financial system and to understand its risks; and
- Increasing accountability to the public via annual reports by governmental authorities that review developments in the financial system, identify key risks, and explain how those risks are being addressed.