Jane Diplock, who has headed the Securities Commission over a period that has seen finance company investors suffer huge losses and investor confidence plummet to unprecedented lows, has been appointed to an international group looking at urgent financial reporting issues arising from the credit crisis.
The International AccountingStandards Board and the United States Financial Accounting Standards Board set up the Financial Crisis Advisory Group in December to advise them on standards-setting implications of the global financial crisis and potential changes to the global regulatory environment.
The globe-trotting Diplock, who is also the chairwoman of the executive committee of the International Organisation of Securities Commissions, is the only representative from Australasia. At the new board's first meeting, Diplock emphasised that "restoring investor confidence should be the number one priority for standards setters when considering any changes to reporting standards".
While the Securities Commission's stated purpose is "to strengthen investor confidence and foster capital investment", critics including Business Herald columnist and fund manager Brian Gaynor argue that the commission under Diplock has been far too quiet and docile in its approach.
While Diplock has said the commission's powers to protect investors' interests are limited, Gaynor believes she and the commission have not done enough to review securities laws and make recommendations for reform that would enable the commission to achieve its stated aims.
The new international advisory group will identify "significant accounting matters" for urgent consideration by the two boards as well as long-term issues and will report within six months.
