IFAC urges G20 to focus on rebuilding public trust

Wednesday, 28 November 2018 00:00 - - {{hitsCtrl.values.hits}}

The International Federation of Accountants (IFAC) has called upon G20 countries to pursue smart regulation, heightened transparency, and inclusive growth to rebuild trust in institutions and advance global economic progress.

“Low levels of public trust threaten both economic and political stability,” said IFAC CEO Fayezul Choudhury. “Leaders in government and business must work together to bolster good governance and collaborate for effective public policies that inspire confidence in the institutions supporting the global economy.”

G20 countries play a crucial role in fostering institutions and governance models that can anticipate, respond to, and mitigate future crises. In advance of the 2018 G20 Summit in Buenos Aires, Argentina, IFAC issues 10 actionable recommendations for G20 countries to support the global economy.

Develop smarter regulation

Regulation must effectively support the public interest through well-targeted conception, effective design and committed implementation. To achieve smarter regulation, G20 countries must:

Develop and adopt consistent, comprehensive, and high-quality regulation
Create a coherent, transparent global regulatory environment that limits divergence
Implement internationally-accepted standards to enhance confidence and stability in the global financial system

Increase transparency

Robust transparency in the public and private sectors is key to earn public trust, fight corruption, encourage good governance and promote ethical business practices. To increase transparency in the global economy, G20 countries must:

Strengthen governance in the public and private sectors
Embrace integrated reporting
Enhance public sector financial management
Collaborate to tackle corruption

Enable inclusive growth

The fruits of a growing global economy must be shared inclusively to inspire confidence in the future. To enable inclusive growth, G20 countries must:

Foster an environment that supports small- and medium-sized entity growth
Create a secure and digital-ready investment environment
Collaborate for a coherent international tax system

IFAC is the global organisation for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of more than 175 members and associates in more than 130 countries and jurisdictions, representing almost 3 million accountants in public practice, education, government service, industry, and commerce.