Light touch regulation and self regulation did not work, the Commissioner said. Half of the advocates of such a regime have been sacked and the other half have seen their instruments broken.
Commissioner McCreevy outlined the measures to be taken urgently to overcome the financial crises. Light touch regulation and self regulation did not work, the Commissioner said in a speech held in London. Half of the advocates of such a regime have been sacked and the other half have seen their instruments broken, McCreevy summed up.
To find a way out the Commissioner proposed several issues needed, including:
Ø a global accounting standard setter with 21st century standards of governance.
Ø quick adoption of the CRD and Solvency II directives.
Ø a roadmap on how the risks from credit derivatives can be mitigated.
Ø abolition of perverse incentives stemming from executive compensation schemes.
Ø adoption of Commission proposals on securitization.
Ø tackle the conflicts of interest within rating agencies.
Ø better oversight and crisis management mechanisms.
Ø much greater international co-operation.
Full speech
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