Hunting Process for ISAB Chair Opposed by Europe

Jack Humphrey, Regulatory journalist
August 16, 2010 /

European politicians are discontented with the lack of transparency in the process carried out by the International Accounting Standards Board for finding a new chairman. The new criticism tracks a history of complaints from Europe in regard to the perceived manner wherein Sir David Tweedie, the current chairman, made decisions and prioritized the US espousing international rules at the expense of European interests. As reported by the Financial Time, a successor to Tweedie is known to be announced by October, which was initially to be announced in the summer. Officials close to Michel Barnier, European Union internal market commissioner, have confirmed discontent over the lack of transparency in the process and want it to be slowed down. As told by a senior EU source, the commissioner has made it very clear as that he wants to see the governance. In this case, the process has not been as thorough and open as it could have been and the commissioner believes that the monitoring board should be involved fully in the process. The commission itself is not concerned about any particular candidate, but the process itself. For instance, Barnier has made calls over and over again for greater regulatory and company presence on the IASB board. The one contender whose name has been mentioned repeatedly so far is that of the current head of UK Accounting Standards Board, Ian Mackintosh, whom Sir David Tweedie is said to favour. While the International Accounting Standards Board has not published the names of potential candidates at any stage, Tweedie told the FinancialTimes that he could not remark on the details of the hiring process and that the whole debate is in public.

 

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