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The Global Financial Architecture: Twenty‐First Century Solutions *
Author(s) -
AO Jane Diplock
Publication year - 2009
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2009.00054.x
Subject(s) - premise , nexus (standard) , architecture , jurisdiction , key (lock) , finance , economics , global financial system , financial market , business , accounting , law , computer science , political science , computer security , art , philosophy , linguistics , visual arts , embedded system
Twentieth‐century global financial architectural solutions are outdated and have been found wanting. They are fundamentally structural solutions and continuing to rely on them would be to run the risk of repeating our mistakes. We must look to twenty‐first century solutions. Solutions created post‐1945 need replacing with networked solutions, reflecting what we see in the Internet and its development. These are not fanciful notions but concepts that have already been successfully modelled, albeit in a relatively narrow sphere. What we need is a mechanism by which global financial standards can be implemented in every jurisdiction around the world. This paper proceeds from the premise that the nexus between investor confidence and financial market stability is a crucial one, and one that a regulatory approach can impact. It discusses the international regulatory environment and the role of key players in the emerging global financial architecture, in particular the International Organization of Securities Commissions ( IOSCO ). It also examines the potential that mutual recognition offers for the trans‐Tasman market.