9 April 2009
Global Accounting Body: G20 Summit Paid Not Enough Attention to Hedge Funds, Toxic Assets and Environment
Publishing its overview of the outcomes of the G20 summit held on 2 April 2009, ACCA (the Association of Chartered Certified Accountants) is concerned that the meeting missed clarification of key issues, especially regarding regulation of hedge funds and toxic assets.
Helen Brand, ACCA’s Chief Executive, says: “The G20 resulted in largely positive reactions from business leaders around the world. There were strong messages about global co-ordination and regulation. But there was no firm plan announced to deal with the billions of dollars of toxic assets clogging up the global banking system, although leaders did agree that there should be a global common approach to tackling them. And probably because it is such a complex issue, details about the regulation of hedge funds were missing.
“While we welcome the establishment of the Financial Stability Board, we do not yet know how it will work. It is crucial that reforms regarding the way the financial services sector is regulated forestall future crises, rather than simply focussing on past failings. We need a system where sound regulation, supervision and good corporate governance reinforce each other.”
ACCA is also disappointed that there was very little mention of the environment, or of measures involving investment in a low-carbon economy. Ms Brand adds: “ACCA believes that the twin crunches of climate and finance have lead to a unique and incredible opportunity to re-build global markets with systems sympathetic to climate change, that value societal and environmental costs and that are sustainable in the truest sense. It was a missed opportunity by the summit leaders not to place sustainability central to its plans.”
The G20 also promised that the International Monetary Fund will be asked to take a stronger role in supervising the world financial system. Ms Brand says: “As a global organisation, we are delighted that noises are being made that the power base of the IMF and the World Bank will be redistributed, although there is a deadline of 2011. Qualified candidates from any part of the world should be able to apply for these important positions.”
On a final positive note, Helen Brand concludes: “ACCA was particularly delighted that the G20 communiqué called on accounting standard setters – the International Accounting Standards Board and the Financial Accounting Standards Board – to work urgently on a single set of high-quality global accounting standards. ACCA has long favoured the principles-based International Financial Reporting Standards (IFRS).”
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For further information, please contact:
Nataliya Vovchuk
Head of ACCA Ukraine, Baltic and Caucasus States
office 77, 9/2 Chervonoarmiyska St., Kyiv 01004, Ukraine
tel. +38 (044) 498 34 50
tel/fax +38 (044) 498 34 51
Andriy Gorbal
ACCA Public Affairs and Media Relations Officer for Central and Eastern Europe
+44 (0) 759 000 0803
+380 97 223 3204
Notes to Editors
- ACCA is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. We have 362,000 students and 131,500 members in 170 countries worldwide.
- ACCA has worked with governments, national organisations and development agencies in emerging economies- for over 20 years- promoting the accounting profession, to create value for the communities, businesses and individuals it serves.
- ACCA believes that globalisation of business means that one set of reporting standards is essential. We favour the principles-based IFRS.
- ACCA understands the real issues facing small businesses as 63,000 of our members work in SMEs or small partnerships worldwide.