Policy Framework for Effective and Efficient Financial Regulation
The Policy Framework ( revised in 2010) offers an integrated set of principles for the development of effective and efficient financial regulation. The Policy Framework builds on OECD work on regulatory quality, namely the Reference Checklist for Regulatory Decision-making and Guiding Principles for Regulatory Quality and Performance. The Policy Framework stresses the need for: i) a sound understanding of the financial landscape, based on a high level of transparency, surveillance, and analysis; ii) clearly articulated policy objectives and effectively designed and implemented policy instruments; iii) a coherent and well-functioning system of governmental institutions, with information-sharing, coordination, and accountability mechanisms in place; and iv) on-going review of policies. It also highlights the need for financial regulation to be pre-cautionary in nature, risk-based, comprehensive, consistent, transparent, competitively neutral, and well-coordinated internationally. General Guidance and a High-Level Checklist accompany the Policy Framework. The Policy Framework usefully reinforces and complements the IMF's Code of Good Practices on Transparency in Monetary and Financial Policies.