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Key Issues identified at TISL round table
on Corporate Collapses: Role of stakeholders
The Transparency International Sri Lanka (TISL) recently
held a Round Table Conference on “Corporate collapses
in Sri lanka: The role of stakeholders.” Following
are the key issues Identified at the event. It was decided
that these issues would be further reviewed by an Invited
Expert Panel(s) and Specific Collective Good Governance
Embedded Strategic Way Forward recommendations
developed
1. Review the recommendations set out in the letter
addressed to HE the President by TISL attached and develop
follow up action strategies
2. Develop a set of recommendations and improved regulatory
control measures to be introduced to mitigate the risks
of significant corporate collapses in the banking and
financial services sector
3. Develop a set of recommendations for legal and regulatory
reforms to ensure that all significant deposit/pseudo
deposit taking institutions are effectively regulated
and any persons or institutions operating or attempting
to operatte outside of such regulatory network are severely
dealt with and the culture of impunity now seen are
minimised
4. Examine whether the ”Informal Economy”
and “Black Money in circulation” increased
the risks of banking and financial sector and any remedial
way forward action recommendations including more effective
regulatory action by all associated regulators including
the FIU
5. Develop way forward recommendations to improve the
effectiveness of External Audits, Rating Agencies and
Financial Analysts, Institutional Investor leveraged
Governance enhancement options, Accounting and Auditing
Standards Monitoring Board leveraged Governance enhancement
options, with special emphasis on related party and
conflicts of interest disclosures
6. Develop recommendations to enhance the transparency,
good governance assurance, debate and dialogue, early
warning amber light signals, investigative journalism
linked positive supportive role of media (including
options for effective dialogue leveraging the ITC capability
eg. Web based chat sites and blogs)
7. Develop strategies that Regulators and Media can
implement to improve the awareness of and commitment
to “risk-reward” relationship of investments
and ability identify the characteristics of potential
dupers and potential duped and risk mitigating guidelines
in accepting media advertisements and advertorial representations
8. Develop lessons and recommendations from examining
how the market participant stakeholders including the
Executive, Legislature, Law Enforcement Officials, Judiciary,
Regulators, Revenue Authorities, Media, Chambers, Professional
Bodies and Civil Society Groups in India, Western World
and USA have reacted post similar case situations and
corporate collapse
9. Determine any key gaps in knowledge, skill sets,
attitudes and leadership capability of key regulators
and law enforcement officials in effectively and on
a timely response action based discharging of their
roles role post significant white collar crime and corporate
collapses
10. Develop a set of strategic action steps to enhance
the community participatory/community voice led control
regimes being more effectively leveraged and in place
with a commitment to values and societal norms as a
natural barrier to the crystallisation of bad behaviours.
11. Strategies to encourage ‘Principles of Good
Governance” and Values and Societal Norms based
Management, Control, Regulation and Enforcement vs.
a rules based approach and strategies to encourage positive
public critique and dialogue, minimising any negative
implications of the fear psychosis and laws relating
to defamation discouraging the effectiveness of such
strategies
12. Identify whether the state of the economy and the
bench mark expectations on banks and financial houses
had any negative impact on the present challenges and
available future risk mitigation steps
13. Develop more effective” Fit and Proper Persons”
guidelines with a set of added criteria to apply in
the case of “family/Closely controlled” entities
14. Develop submissions on the need for early adoption
of an appropriate “Freedom of Information Act “and
Transparency related disclosures on stimulus packages
and support packages for ailing or collapsed banks and
financial enterprises
15. Recommendations to enhance the collective action
commitment of all societal and market participants of
banking and financial sector ( including Regulators,
Institutional Investors, Investor Associations, Professionals,
Media, and Civil Society Groups)towards a Vision and
a set of Core Values as well as “Curative”
and “Punitive” response action against non
compliance and violators
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