Pratt, RichardBerg, Alexander2014-03-182014-03-182014-03https://hdl.handle.net/10986/17298This paper reviews the published work on the governance of regulatory authorities in order to identify the basic governance standards that apply and some of the factors that affect the implementation of good governance. There are four pillars of good regulatory governance: independence, accountability, transparency, and integrity. The regulator should be operationally independent from commercial and political influences in the exercise of its functions and powers. Accountability is the means whereby a regulatory authority is held responsible for the actions it takes. Transparency refers to the publication of relevant information designed to demonstrate consistency and openness. The fourth governance pillar, integrity, refers to the internal processes that the authority adopts to ensure there is discipline and consistency in its operations and to limit the risks of regulatory staff acting in their own self-interest as opposed to that of the authority and the market. These four elements are mutually reinforcing, in that accountability is necessary to provide legitimacy to independence, transparency is necessary to demonstrate that independence does not lead to abuse or improper behavior, and integrity is necessary to provide the discipline to control the exercise of independent powers. Available evidence suggests that independence and accountability are far from being universally applied in practice. The paper concludes with some practical suggestions that experience indicates are likely to enhance the effectiveness of the governance of securities regulators. Good governance of the securities regulator is necessary for effective regulation. It is also of importance in setting an example to encourage good corporate governance in the private sector.en-USCC BY 3.0 IGOABUSEACCOUNTABILITYACCOUNTABILITY ARRANGEMENTSACCOUNTABILITY MECHANISMSACCOUNTINGACTIVE MARKETADMINISTRATIVE SANCTIONSALLOCATION OF RESPONSIBILITIESAMENDMENTATTORNEY GENERALAUDIT COMMITTEEAUDITORAUTONOMOUS AGENCYBANK POLICYBANK SUPERVISIONBANK SUPERVISORSBARRIERBOARD MEETINGBOARD MEETINGSBOARD MEMBERBOARD MEMBERSBONDBRIBERYBRIBESBROKERSCAPITAL ALLOCATIONCAPITAL MARKETSCENTRAL BANKCENTRAL BANK INDEPENDENCECENTRAL BANKSCHECKSCIVIL SERVANTCODE OF ETHICSCODES OF CONDUCTCOLLECTIVE RESPONSIBILITYCOMMON LAWCOMPETITORCOMPLAINTSCONFIDENCECONFIDENTIALITYCONFLICT OF INTERESTCONFLICTS OF INTERESTCONSENSUSCONSTITUTIONCONSULTATIONCORPORATE GOVERNANCECORRUPTIONCREDITORSCRIMINALCRIMINAL SANCTIONDECISION MAKINGDISCLOSUREDISCLOSURE DOCUMENTSDISCRETIONDRAFT REGULATIONSECONOMIC COOPERATIONECONOMIC DEVELOPMENTECONOMIC GROWTHEFFICIENT MARKETSEMERGING MARKETSENFORCEMENT ACTIONENFORCEMENT POWERSENFORCEMENT PROCEDURESEQUITY MARKETSEXCHANGE COMMISSIONEXPENDITUREFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL SYSTEMFINANCIAL SYSTEM STABILITYFORM OF TAXGOOD GOVERNANCEGOVERNANCE ISSUESGOVERNANCE PRACTICEGOVERNANCE PRACTICESGOVERNANCE STANDARDSGOVERNMENT AGENCIESGOVERNMENT AUTHORITYGOVERNMENT BONDSGOVERNMENT DEPARTMENTGOVERNMENT FUNDINGGOVERNMENT FUNDSGOVERNMENT MINISTRIESGOVERNMENT OFFICIALSGOVERNMENT POLICYHOUSE OF COMMONSINCOMEINDIVIDUAL MARKETINFORMATION SHARINGINTEGRITYINTERNAL CONTROLSINTERNATIONAL BANKINTERNATIONAL BEST PRACTICEINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL SETTLEMENTSINTERNATIONAL STANDARDSINVESTIGATIONINVESTIGATIONSINVESTOR PROTECTIONJUDICIAL REVIEWJUDICIAL SYSTEMJUDICIARYJURISDICTIONJURISDICTIONSLAWSLEGAL ADVICELEGAL PROTECTIONLEGAL TRADITIONSLEGISLATIONLEGISLATIVE REQUIREMENTSLEGISLATURELEGITIMACYLIABILITYMARKET INTERMEDIARIESMARKET LEVELSMARKET PARTICIPANTMARKET PARTICIPANTSMARKET PRACTICEMARKET PRICEMARKET REGULATORMINISTERMINISTER OF FINANCEMINISTERSMINISTRY OF FINANCEMONETARY FUNDMONETARY POLICYOPERATIONAL INDEPENDENCEOPERATIONAL PROCESSESOUTPUTOVERSEAS TERRITORIESPENSIONPENSION FUNDSPOLICY OBJECTIVESPOLITICAL ECONOMYPOLITICAL INTERFERENCEPOLITICIANSPRIVATE SECTOR DEVELOPMENTPROFESSIONAL ASSOCIATIONSPROSECUTIONPROSECUTORPROTECTION OF INVESTORSPUBLIC ACCOUNTABILITYPUBLIC AGENCIESPUBLIC ASSETSPUBLIC COMPANIESPUBLIC INTERESTPUBLIC SECTORQUALITY REGULATIONREGISTRARREGISTRATION FEESREGULATORREGULATORSREGULATORY AGENCIESREGULATORY AGENCYREGULATORY APPROACHREGULATORY AUTHORITIESREGULATORY AUTHORITYREGULATORY BODIESREGULATORY COMMUNITYREGULATORY DECISIONREGULATORY DECISIONSREGULATORY GOVERNANCEREGULATORY MEASURESREGULATORY OFFICIALSREGULATORY POLICIESREGULATORY POLICYREGULATORY PROCESSREGULATORY PROCESSESREGULATORY REFORMREGULATORY REQUIREMENTSREGULATORY RESPONSIBILITIESREGULATORY STANDARDSREPRESENTATIVESREPUTATIONRISK FACTORSRISK MANAGEMENTRISK MANAGEMENT COMMITTEESANCTIONSECURITIESSECURITIES MARKETSECURITIES MARKETSSECURITIES REGULATIONSECURITIES REGULATORSECURITIES REGULATORSSECURITIES REGULATORY AUTHORITIESSECURITIES REGULATORY AUTHORITYSHAREHOLDERSSMALL COUNTRIESSTATE-OWNED ENTERPRISESSUPERVISORY AGENCIESSUPERVISORY BOARDTRANSPARENCYWHISTLE BLOWINGWHISTLE-BLOWERSWITHDRAWAL10.1596/1813-9450-6800