||Asean Affairs 12 June 2013
OECD Task Force on Enforcement to Produce Best Practices Report in 2014
Capital market regulators in Asia recently held the first formal meeting of the Organisation for Economic Cooperation and Development (OECD) Asian Roundtable Taskforce on Enforcement (the Taskforce), with the aim to produce a best practices report to improve public supervision and enforcement in the area of corporate governance requirements in the region. The report will serve as a guide to regulators in their efforts to enhance the effectiveness of public enforcement in Asia.
At the meeting held in conjunction with the Asian Round Table on Corporate Governance (ARCG) 2013, hosted by the Securities Commission Malaysia (SC) and Bursa Malaysia Berhad (Bursa Malaysia) last week, the Taskforce discussed the results of an OECD-commissioned survey conducted with eleven Asian countries between March to April 2013. The survey was undertaken to gauge the state and development of public enforcement.
The Taskforce also deliberated on key issues related to public enforcement practices in the region and shared recommendations and experiences. Subsequently, the Taskforce will continue to work on producing a best practices report, which is expected to be published by the next OECD ARCG in 2014.
Members of the Taskforce include representatives from China, Hong Kong, Taipei, Korea, India, Indonesia, Singapore, Thailand, Philippines, Pakistan, Vietnam, Bangladesh and Mongolia.
Dato Dr. Nik Ramlah Mahmood, Deputy Chief Executive of SC said, “It is important for Asian countries to come together to share challenges and best practices to enhance public enforcement. Hence, the report will provide a guide to policy makers and other stakeholders of corporate governance in further shaping the policies and best practices in this area.”
Selvarany Rasiah, Chief Regulatory Officer of Bursa Malaysia and chairperson of the Taskforce said, “Today, Asia is a key region for both investment and capital raising. In this regard, the Asian landscape on corporate governance has undergone significant positive changes. Corporate governance frameworks in Asia do by and large reflect the most developed thinking. And whilst progress has been seen in the area of public enforcement, it is recognised that there is room for a good practices report to aid regulators as they seek to enhance the effectiveness of public enforcement. Hence, the development of the good practices report is indeed timely.”
Separately, the ARCG also endorsed a report on “Better Policies for Improved Board Nomination and Election in Asia”, developed by the OECD Asian Roundtable Taskforce on Board Nomination and Election. The report puts forward recommendations to ensure a transparent, fair and formal board nomination and election process, which include measures such as empowering the nomination committee, facilitating participation by all shareholders to enhance transparency and accountability of the board evaluation process.