The G20 has decided to strengthen regulation globally with the introduction of the Financial Stability Board (FSB) that has been proposed to take this role at the G20. Europe is very interested in that although there are such voices in the US as well. Jean-Claude Juncker (Eurogroup’s head) statement that the Anglo-Saxon financial model is dead, regulation is needed. It will be interesting to see developments in this area.
There are various interesting question to be answered regarding global regulator; for example how possible that is considering differences in legal systems? From another view in the past there were many concerns over too much regulation in the US (for example from Sarbanes-Oxley). It was suggested that because of that NYSE was losing market share over the LSE. Is this paradox? Will global adoption of IFRS help in this way? I won’t argue the technical robustness of IFRS but what I find fascinating is the notion of “substance over form” which may make “window dressing” more difficult to defend in retrospect.