ABSTRACT
By the end of the last century, our conceptualization of the finance sector regulation was looking out-dated. This century has seen a shift in thinking that stresses the importance of a more networked view, a shift accelerated by the perceived causes of, and fall out from, the global financial crisis. It has also seen greater focus on corporate governance. The International Organization of Securities Commissions is at the forefront of this new international thinking, which suggests more effective ways of encouraging and regulating markets. There are important implications for the New Zealand financial sector reform. The title of this chapter might at first glance sound somewhat remote. It suggests a big picture that, while academically interesting, might seem to have little to do with the everyday realities of the business conducted by boards and individual directors. I hope, however, to build a bridge between that bigger conceptual picture and on-the-ground, day-to-day business decision making; to share my understanding of the essential link between the international regulatory landscape and the domestic scene. I begin by sketching my perspective on the crisis, its causes and lessons and go on to explain the new thinking replacing the old orthodoxy, and what the implications of this new thinking are – not just on a world-scale but for individual boards and their directors, shareholders and the wider community at home. I begin and end, however, with the importance of corporate governance.
