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.