1. ulatory Reform Presentation to the INTOSAI Committee on Knowledge Sharing and Knowledge Services Mexico City, Mexico September 7, 2016

2. Presentation Overview Page 2 I.Background on the Working Group II.Year in Review  Key Accomplishments  Third Annual Meeting III.Future Priorities INTOSAI Working Group on Financial Modernization and Regulatory Reform

3. Working Group Membership (as of September 2016) Page 3 The Working Group has members from 24 SAIs: Austria Brazil Canada Chile China Cyprus Estonia Finland France Hungary Indonesia Italy Republic of Korea Mexico Morocco Netherlands Poland Russia Saudi Arabia Spain Sweden United Kingdom United States European Court of Auditors Background INTOSAI Working Group on Financial Modernization and Regulatory Reform

4. Subgroups Page 4 INTOSAI Working Group on Financial Modernization and Regulatory Reform Subgroup One: Exchange of information about audit methodologies and experiences Led by China National Audit Office Subgroup Two: Outreach to international financial bodies Led by Office of the Auditor General of Canada Subgroup Three: Review and analysis of international reform efforts and potential emerging risks Led by U.S. Government Accountability Office Background (cont.)

5. Page 5 INTOSAI Working Group on Financial Modernization and Regulatory Reform Year in Review Reaffirmed relationship with International Monetary Fund (IMF) with new point of contact; clarified processes for SAI outreach to IMF staff Established working-level relationship with Financial Stability Board (FSB) and agreed to exchange information on a continuing basis Developed Working Group website: http://www.contraloria.cl/Wdpress/Financial-Modernization/ Published INTOSAI Journal article on GAO framework for evaluating financial regulators’ oversight of the financial system Key Accomplishments

6. Part I. Full Working Group Member Presentations and Discussion Page 6 Presentations from members on current and recent financial regulatory audits: China National Audit Office European Court of Auditors South Korea Bureau of Audit and Inspection United Kingdom National Audit Office United States Government Accountability Office Presentation from Comptroller General of the Republic of Chile of new Working Group website Discussion of Sustainable Development Goals and potential Working Group actions INTOSAI Working Group on Financial Modernization and Regulatory Reform Third Annual Meeting

7. Part II. Subgroup Discussions - Key Topics Page 7 Subgroup 1: Exchanging audit experiences Ongoing impacts of the financial crisis on SAIs’ authorities Challenges facing SAIs conducting financial regulatory audits, including access to information, human resources Subgroup 2: Outreach to international financial bodies Ways to maintain established relationships with the International Monetary Fund, Basel Committee on Banking Supervision, and Financial Stability Board Subgroup 3: Monitor financial system reforms, emerging risks Impacts and effectiveness of international financial regulatory reforms, now that implementation is nearing completion Approaches to monitoring emerging financial stability risks INTOSAI Working Group on Financial Modernization and Regulatory Reform Third Annual Meeting (cont.)

8. Part III. Insights from outside experts Page 8 Propagation of Economic and Policy Shocks and the Impact on Financial Regulatory Systems David Dollar, Brookings Institution Joseph Gagnon, Peterson Institute of International Economics Charles Taylor, U.S. Office of Financial Research Presentation from the IMF on its Financial Sector Assessment Program (FSAP) and recent FSAP conducted on the United States Presentation from the Basel Committee on Banking Supervision (Basel Committee) on Banking Standards Implementation Presentation from FSB on Reform Implementation Monitoring INTOSAI Working Group on Financial Modernization and Regulatory Reform Third Annual Meeting (cont.)

9. Page 9 Feature in-depth discussions at future Annual Meetings on specific audit tools and approaches Provide information on a periodic basis to the international financial bodies (IMF, Basel Committee, FSB) on SAIs’ work, to ensure a mutually beneficial relationship Investigate effects of internal financial reforms in individual countries (costs and benefits e.g.) Continue to develop methodology for assessing emerging risks to financial stability Following INCOSAI, consider ways to incorporate Sustainable Development Goals into Working Group activities INTOSAI Working Group on Financial Modernization and Regulatory Reform Future Priorities Working Group Focus 2016-2017

10. Questions and discussion Page 10 INTOSAI Working Group on Financial Modernization and Regulatory Reform Conclusion