The value of independence
The PIOB enhances the confidence in global financial markets in two different ways:
Overseeing IAASB and IESBA activities
Approving the Nominations to the SSBs and the SAC
The PIOB carries out oversight of SSB strategies, work plans and projects throughout their life cycle with complete independence. This ensures that they respond to the Public Interest and that Due Process has been followed.
The oversight cycle
2
The PIOB Oversight Team drafts the Briefing Memo for the PIOB Observer considering each project and workstream in light of the existing Public Interest issues lists, which is subsequently made public. The Observer also participates in a dedicated briefing session to prepare for the SSB meeting, to which all PIOB Board members are invited.
3
PIOB Observer attends the SSB quarterly meeting and assesses the SSB’s process for considering stakeholder input, and the depth and inclusivity of its members’ discussions. The Observer intervenes as needed to draw attention to Public Interest issues and provide any necessary explanations.
Following the SSB meeting, the PIOB Observer produces an Observation Memo which helps identify potential for new issues to emerge (subject to the outcome of the engagement with the SSB Chairs at the next quarterly PIOB meeting) and/ or update the new Public Interest issues lists.
The Observation Memos are published shortly after the SSB quarterly meeting.
4
At the PIOB quarterly meeting, the Briefing Memos and Observation Memos feed the PIOB discussion on the projects and strategies developed by the SSBs, and the identification of Public Interest issues lists. Also, the SSB Chairs discuss with PIOB the development of projects and the Public Interest issues raised by the PIOB. The Public Sessions at the PIOB quarterly meetings are now open to the public.
The discussion is reflected in the PIOB minutes of the meeting. The list of Public Interest Issues is updated and published.
5
The list of Public Interest issues is then updated and published. Each update
becomes the key reference point for the PIOB’s consideration of the next SSB meeting cycle.
6
At the end of the SSBs’ processes, and following the PIOB’s receipt of the required documentation, the PIOB Oversight Team prepares an analysis of Public Interest responsiveness:
For the SSBs’ multiannual strategies and work plans: The PIOB Board makes a decision on the appropriateness of its items and overall completeness from a Public Interest perspective. The PIOB publishes its conclusions.
For a new standard, or a revision of an existing standard: The PIOB Board makes a decision whether to certify the standard on the basis that it was prepared in accordance with agreed due process and is responsive to the Public Interest, based on the concepts and principles of the Public Interest Framework. The PIOB publishes its certification.
How we identify public interest issues
The PIOB´s oversight role is guided by the Public Interest Framework. This is part of the MG Recommendations issued in 2020 to Strengthen the internationl Standard-setting system.