The IAIS supports the objective of the Monitoring Board to review whether the current governance structure effectively promotes the standard-setter’s primary mission of setting high quality, globally-accepted standards, and whether the standard-setter is appropriately independent yet accountable. This review is an important part of ensuring that the governance mechanism of the IFRS Foundation remains relevant, fit for purpose, and supports the IASB’s objective of delivering a single set of high-quality global financial reporting standards.

 

The IAIS is the global representative of insurance regulators and supervisors of some 190 jurisdictions, and has a strong history of working closely with other financial sector standard-setting bodies and international organisations to promote financial stability. As such, the IAIS has a well-established and vested interest in ensuring the independence and proper governance of the IFRS Foundation and, the IAIS believes, it should be represented on the Monitoring Board.

 

While the 3-level governance structure provides a sound basis for the governance of the IFRS Foundation, this could be improved further by acting on a number of the issues and concerns raised in the Consultative Report. The IAIS is supportive of the proposal to expand membership of the Monitoring Board and provide it with sufficient secretariat resources to enable members to fulfil fully their roles and responsibilities. The IAIS is also supportive of the Monitoring Board having a larger role in the governance process, provided that any extension of duties are clearly devised and documented, and are not likely to compromise the effectiveness of each of the other levels of the governance structure.

 

Moreover, it is important that greater consideration is given as to how the Monitoring Board fits into the international architecture of financial reporting and regulation, including how it may best work together with the Monitoring Group to achieve common aims and objectives.

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