IIF Proposed New Financial Reforms
The financial sector is keen to implement adjustments to cope up with the crisis that hit every industry around the world. With this, as a consequence, regulators and politicians are already taking actions to impose tougher and stiffer regulation.
Nonetheless, Institute of International Finance, a conglomeration of top financial firms, already presented their own self reformation plans. They proposed a set of new Principles of Conduct and some suggestions on different issues concerning risk and risk management, compensation and incentive policies, asset valuation, and among others. It also encourages more transparency and disclosure.
Aside from that, IIF Chairman of the board Dr. Josef Ackermann said that the implementation of this proposal will help restore confidence of the different sectors and strengthen the financial industry itself.
He also made emphasize on the need to improve the overall performance of the financial sector and a lot of companies are already exercising good practice that he aimed to highlight for others to follow.
This proposal doesn’t stop here though. Continuous self-assessment and adjustment of plans and policies are observed accordingly.
In the long run, this proposal will help not only to sail smoothly in our present situation but also to steer clear of the future crises that may come along the way. This includes the formation of Market Monitoring Group to sense new weaknesses within the financial system.
The group will work as an early warning system that identifies possible future vulnerabilities or failing standards and endorse new measures to counter the effect and of such weaknesses.
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