Revised OECD principles on corporate governance – an NAPF response
The OECD Principles on Corporate Governance have for some time proved to be an important reference point and standard for national policymakers and regulators as well as, in emerging markets in particular, corporations and investors in their efforts to design and improve their corporate governance frameworks and practices. It has however, been some time since the Principles were last updated and therefore it is right that they are now revisited in order to reflect and ensure they are still in keeping with current expectations of best practice – after all much has changed in recent years.
The NAPF believes that for the OECD Principles to maintain their relevance, status and usefulness it is important that the OECD is ambitious in its revisions and endeavours to more than simply keep pace with the latest developments. If the resultant revised Principles are not suitably ambitious they risk being out of date soon after publication. With institutional investors increasingly investing across global markets the OECD Corporate Governance Principles can play an critical role in enhancing investor confidence in the governance standards and frameworks within emerging markets and fostering wider, deeper and better functioning capital markets.