As global markets become more and more intertwined, issues arise from the differing perspectives and rules of national regulatory regimes--conflicting financial reporting standards and Section 404 of the Sarbanes-Oxley Act in the U.S., to name two. Pointing to the different transatlantic approaches to corporate governance, Securities and Exchange Commission chairman Christopher Cox, in the keynote address to the U.S.-European Union Corporate Governance Conference in Washington, D.C. on Oct. 9, noted that "different markets can legitimately have different concerns. And those concerns arise, in many cases, from unique circumstances." That, for Cox, is one reason that a single, universal set of regulations is "fool's gold." But convergence should be achieved wherever possible, he added: "We have to ask ourselves exactly why we do what we do. And if the answer is because we've always done it that way, that won't be enough." His speech is excerpted here.
Our global markets are leading the way to a global cooperation that is just as important to building bridges and understanding, and ultimately to promoting peace and prosperity, as any diplomacy that our foreign ministries and departments of state routinely conduct. And just as with diplomacy and statecraft among nations, the way forward for our capital markets requires not only hope but also patience, thought and wise choices. As the world's markets continue to grow and integrate, Europeans, Americans and the entire world stand ready to reap the benefits.
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