The institute sets out its concerns in an open response to the OECD’s consultation on proposed revisions to the principles of corporate governance which ran from 14 November 2014 to 4 January 2015.   

ACCA claims the OECD’s latest review of the principals, which were first released in 1999 and subsequently revised in 2004, has missed the opportunity to restructure into fewer high-level principles which are globally applicable and have a longer shelf life. The institute says these could be supported by more detailed and regularly updated guidance on implementation relevant to different markets.

It would like to see the principles reduced to a set of 10–12 statements that can apply to all jurisdictions and to individual enterprises and at the same time provide a more long term approach, without requiring regular revisions. It also stresses that the guidelines should address the needs of jurisdictions at different stages of corporate governance development, as well as different sizes of enterprise, and the requirements of both the public and private sectors.

Adrian Berendt, chair of ACCA’s global forum for governance, risk and performance, said any revisions should take into consideration corporate culture and was surprised that there were so few references to behaviours, ethics and public interest.

‘These areas are challenging but should be addressed by the principles. They are part of leading thinking on corporate governance in light of recent crises and their importance is paramount. There is increasing emphasis on ethical behaviour and culture in financial services, but OECD has missed the opportunity to address these issues in the guidance,’ Berendt said.

ACCA’s full consultation response is here: http://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2014/december/cdr1329.html