Investor panel urges reform of US financial markets

Daily news headlines


WASHINGTON, DC - The US Investors' Working Group (IWG) has recommended bold industry reforms be introduced to restore investor trust in US financial markets.

The report urges some immediate financial regulatory fixes, and a more careful consideration of the long-term picture of systemic risk oversight and fundamental reform of the US regulatory landscape.

The IWG, an independent panel of former regulators and investor and consumer interest representatives, is sponsored by the CFA Institute Centre for Financial Market Integrity and the Council of Institutional Investors.

Reform proposals include strengthening existing federal agencies responsible for policing markets - notably the Securities and Exchange Commission (SEC) - as well as the creation of a systemic risk oversight body unaffiliated with existing regulators - differing from the regulatory panel proposed by Treasury secretary Timothy Geithner.

A shake-up of corporate governance standards to make risk-reckless boards accountable to investors is also recommended, as is the closing of gaps in oversight of "standardisable" over-the-counter derivatives markets, to be supervised by regulated exchange trading.

The panel consists of experts co-chaired by two former SEC chairmen, Arthur Levitt and William Donaldson, who headed the regulator from 1993 to 2001 and 2003 to 2005, respectively.

"Too often politics and special interests get in the way of doing what's right for investors," said Levitt. "The IWG's inclusive, pragmatic and balanced approach to understanding other proposals and what investors truly need has resulted in a series of actionable recommendations with a longer-term view towards more comprehensive regulatory structure, stronger oversight and better-governed companies."

"The task before policymakers is challenging, but it presents an opportunity to create a more stable, transparent and adaptable US financial market," said Donaldson. "The IWG strongly seeks more investor protections and a system of checks and balances for managing systemic risk. We look forward to advising members of Congress and the Obama administration on what steps are needed to ensure regulation serves the needs of investors, consumers and the broader financial system."

The report can be read here.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Investment banks: the future of risk control

This survey report explores the current state of risk controls in investment banks, the challenges of effective engagement across the three lines of defence, and the opportunity to develop a more dynamic approach to first-line risk control

Op risk outlook 2022: the legal perspective

Christoph Kurth, partner of the global financial institutions leadership team at Baker McKenzie, discusses the key themes emerging from’s Top 10 op risks 2022 survey and how financial firms can better manage and mitigate the impact of…

Emerging trends in op risk

Karen Man, partner and member of the global financial institutions leadership team at Baker McKenzie, discusses emerging op risks in the wake of the Covid‑19 pandemic, a rise in cyber attacks, concerns around conduct and culture, and the complexities of…

Moving targets: the new rules of conduct risk

How are capital markets firms adapting their approaches to monitoring and managing conduct risk following the Covid‑19 pandemic? In a webinar in association with NICE Actimize, the panel discusses changing regulatory requirements, the essentials…

Building resilience into ESG risk management

Risk and resilience continue to play an important role in the navigation of an increasingly uncertain world. Fusion Risk Management explores why it is equally crucial for technology to support organisations in addressing pertinent environmental, social…

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here