IFRS Foundation Trustees Has New Chair
The Trustees of the IFRS Foundation has named Michel Prada as Chairman of the Board.
Mr Prada, a former Chairman of the Executive and Technical Committees of the International Organization of Securities Commissions (IOSCO), is a highly respected advocate of investor protection and independent standard-setting. He brings significant experience of leading investor-focused international organisations.
Mr Prada will serve an initial three-year term, effective 1 January 2012. His appointment follows an extensive global search process led by the Trustees’ Nominating Committee with the support of a leading international executive search firm.
The recommendation for his appointment was unanimously supported by the IFRS Foundation Trustees and subsequently approved by the IFRS Foundation Monitoring Board.
Before and since the IFRS Foundation was created 11 years ago, Mr Prada has been deeply involved in and committed to matters related to the establishment of International Financial Reporting Standards (IFRSs) as the globally accepted high quality set of accounting standards. He served on the initial Nominating Committee that selected the new body of Trustees overseeing the independent standard-setting process in 2000 and was a leading proponent of European adoption of IFRSs in 2005.
In his 12 years as the Chairman of the Autorité des Marchés Financiers (AMF) and its predecessor body, the French markets and securities regulator, he was an outspoken advocate for investor protection and global standards. During this time he served as Chairman of the Executive and Technical Committees of IOSCO and was a founding member of the Financial Stability Forum (now the Financial Stability Board).
Following the accounting-related failures of Enron and WorldCom in the United States and of Parmalat in Europe, Mr Prada led a collaborative effort by members of the international financial regulatory community to establish the Public Interest Oversight Board (PIOB) of the International Federation of Accountants (IFAC) in 2005. More recently, Mr Prada was a member of the Financial Crisis Advisory Group, formed to advise the IASB and the US-based Financial Accounting Standards Board on their response to the financial crisis.
Mr Prada currently serves as Chairman of the International Valuation Standards Council, co-Chairman of the Council on Global Financial Regulation and is a non-executive Director of the International Centre for Financial Regulation.
He attended the Institut d’études politiques de Bordeaux, and then the Ecole Nationale d’Administration from 1964 to 1966. He graduated from the University of Law and Economics in France with a Masters degree in Law.
Sir Bryan Nicholson, Chairman of the Trustees’ Nominating Committee said: “Michel Prada was closely involved in the formation of the IFRS Foundation. It is fitting that he returns to chair the Trustees at a point when IFRSs are on the verge of becoming global standards.
His appointment received the unanimous support of the Trustees and of the Monitoring Board. It is an excellent outcome to an extensive search process.”
Commenting on his appointment as Chairman of the IFRS Foundation Trustees, Mr Prada said: “It is an honour for me to be appointed to a position that was held by a series of prestigious Chairmen. As a securities regulator, I am convinced that fair and efficient markets in a globalised world require global accounting standards that meet the needs of investors and other market participants.
“I have long supported the role of the IASB for that purpose and the need for this organisation to build on appropriate governance and strong independence. I look forward working with my fellow Trustees to support the IASB in delivering this vision.”
Hans Hoogervorst, Chairman of the IASB said: “Michel Prada and I worked closely together during our time at IOSCO. As Chairman of the IOSCO Technical Committee, Michel showed strong leadership that was respected around the world.
“I have always greatly appreciated Michel’s judgement and his commitment to transparency in global markets.”