United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1996-11-01 monographic deposited born digital 169 p. GA 1.13:GGD/AIMD-97-8 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-AIMD-97-8 P0b002ee180387a1d f:gg97008 DGPO 2010-08-12 2011-03-28 GAOREPORTS-GGD-AIMD-97-8 machine generated eng fdlp REPORT GAOREPORTS-GGD-AIMD-97-8 GGD/AIMD-97-8 Information disclosure Derivative securities Reporting requirements Banking regulation Securities regulation Risk management Internal controls Accounting procedures Auditing standards International economic relations Bank Insurance Fund Savings Association Insurance Fund BIF SAIF OCC Supervision by Risk Program Federal Reserve Uniform Financial Institutions Rating System Federal Reserve CAMEL System Australia Germany Japan Singapore Switzerland United Kingdom Other Written Product GGD AIMD GAO conducted a follow-up review of the regulation of financial derivative products, focusing on actions taken or proposed since May 1994 to: (1) strengthen corporate governance and internal controls for derivatives dealers and major end-users; (2) improve regulation of major U.S. derivatives dealers; (3) provide federal oversight of major derivatives dealers that are unregulated affiliates of securities firms and insurance companies; (4) promulgate comprehensive and consistent accounting and disclosure requirements for derivatives; and (5) harmonize regulatory and accounting standards internationally.<p/>GAO found that: (1) many U.S. derivatives dealers and end-users have indicated in industry surveys that they have strengthened their corporate governance systems, improved risk management and internal controls in accordance with banking and securities laws, and developed and refined certain recommended practices to improve controls over derivatives activities; (2) bank regulators are imposing capital requirements that better reflect derivatives risks, collecting more extensive information on banks' derivatives activities, and using bank examination guidelines that focus better on derivatives risks; (3) the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission are collecting more extensive risk information and working with securities firms that have major over-the-counter derivatives affiliates in a voluntary oversight program; (4) SEC proposed additional qualitative and quantitative disclosures about derivatives use by SEC-regulated firms; (5) the Financial Accounting Standards Board (FASB) issued enhanced disclosure rules, as GAO recommended, and proposed an accounting standard for derivatives that should reduce misleading accounting practices and would require that all derivatives be recorded in financial statements; (6) there has been progress toward greater international regulatory harmonization and coordination through major international regulatory initiatives and information-sharing agreements; (7) SEC believes that it is more appropriate for it to focus on market risk of derivative products than on management or auditor reports on derivatives-using SEC registrants' internal control systems; (8) FASB has proposed, but not issued, comprehensive accounting standards for derivatives; and (9) actions taken or proposed by regulators, market participants, and others are consistent with the 1994 GAO recommendations, but many GAO concerns are still valid, and many of its recommendations have not yet been fully implemented. https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-AIMD-97-8/html/GAOREPORTS-GGD-AIMD-97-8.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-AIMD-97-8/pdf/GAOREPORTS-GGD-AIMD-97-8.pdf GAO/GGD/AIMD-97-8 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-AIMD-97-8 Other Written Product GAO/GGD/AIMD-97-8; Financial Derivatives: Actions Taken or Proposed Since May 1994; Information disclosure Derivative securities Reporting requirements Banking regulation Securities regulation Risk management Internal controls Accounting procedures Auditing standards International economic relations Bank Insurance Fund Savings Association Insurance Fund BIF SAIF OCC Supervision by Risk Program Federal Reserve Uniform Financial Institutions Rating System Federal Reserve CAMEL System Australia Germany Japan Singapore Switzerland United Kingdom