Corporate Governance Regulation

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European Commission Timeline, EU Corporate Governance Framework
Submission Date Comment Deadline Final Recommendations
April 5, 2011 July 22, 2011 Fall 2011
European Commission Timeline, EU Corporate Governance in Financial Institutions
Submission Date Comment Deadline Proposed Recommendations
June 2, 2010 Sept. 1, 2010 First Qtr 2011

Corporate governance - the administration, internal oversight, and executive actions of a corporation - has become a major regulatory issue. In the wake of accounting scandals at companies such as Enron, Tyco, and WorldCom, the U.S. Congress in 2002 passed the Public Company Accounting Reform and Investor Protection Act of 2002 (Sarbanes-Oxley Act).[1]

The financial crisis of 2007-08 highlighted lax risk management, oversight, and accounting standards among financial entities. These problems have been blamed for the near-collapse of the financial system.[2]

Regulatory bodies in the U.S., Europe, and Asia have all begun to implement changes in corporate governance of financial entities.

Corporate Governance and the Dodd-Frank Act

The Dodd-Frank Act is intended to reform the U.S. financial sector, curtail or mitigate systemic risks, and avoid a repeat of the financial crisis of 2007-08. Among its provisions are several mandates addressing corporate governance, including:

CFTC Rulemakings:

SEC Rulemakings:


  1. Sarbanes-Oxley Act of 2002. SEC. Retrieved on August 18, 2011.
  2. The Corporate Governance Lessons from the Financial Crisis. OECD. Retrieved on August 18, 2011.
  3. U.K. Shakes Up Bank Regulation. The Wall Street Journal. Retrieved on March 30, 2011.