Governance of Securities Regulators : A Framework

Pratt, Richard ; Berg, Alexander

World Bank, Washington, DC

关键词: ABUSE;    ACCOUNTABILITY;    ACCOUNTABILITY ARRANGEMENTS;    ACCOUNTABILITY MECHANISMS;    ACCOUNTING;   

DOI  :  10.1596/1813-9450-6800
RP-ID  :  WPS6800

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper reviews the published work onthe governance of regulatory authorities in order toidentify the basic governance standards that apply and someof the factors that affect the implementation of goodgovernance. There are four pillars of good regulatorygovernance: independence, accountability, transparency, andintegrity.The regulator should be operationallyindependent from commercial and political influences in theexercise of its functions and powers. Accountability is themeans whereby a regulatory authority is held responsible forthe actions it takes. Transparency refers to the publicationof relevant information designed to demonstrate consistencyand openness. The fourth governance pillar, integrity,refers to the internal processes that the authority adoptsto ensure there is discipline and consistency in itsoperations and to limit the risks of regulatory staff actingin their own self-interest as opposed to that of theauthority and the market. These four elements are mutuallyreinforcing, in that accountability is necessary to providelegitimacy to independence, transparency is necessary todemonstrate that independence does not lead to abuse orimproper behavior, and integrity is necessary to provide thediscipline to control the exercise of independent powers.Available evidence suggests that independence andaccountability are far from being universally applied inpractice. The paper concludes with some practicalsuggestions that experience indicates are likely to enhancethe effectiveness of the governance of securitiesregulators. Good governance of the securities regulator isnecessary for effective regulation. It is also of importancein setting an example to encourage good corporate governancein the private sector.