Oecd legal Instruments

I.C. 
The division of responsibilities among different authorities and self-regulatory bodies 
should be clearly articulated and designed to serve the public interest. 
Corporate governance requirements and practices are typically influenced by an array of legal domains, 
such as company law, securities regulation, accounting and auditing standards, listing rules, insolvency law, 
contract law, labour law, tax law, as well as potentially international law. Corporate governance practices of 
individual companies are also often influenced by human rights and environmental laws, and increasingly 
laws related to digital security, data privacy and personal data protection. Under these circumstances, there 
is a risk that the variety of legal influences may cause unintentional overlaps and even conflicts, which may 
frustrate the ability to pursue key corporate governance objectives. It is important that policy makers are 
aware of this risk and take measures to ensure a coherent and stable institutional and regulatory framework. 
Effective enforcement also requires that the allocation of responsibilities for supervision, implementation and 
enforcement among different authorities is clearly defined and formalised so that the competencies of 
complementary bodies and agencies are respected and used most effectively. Potentially conflicting 
objectives, for example where the same institution is charged with attracting business and sanctioning 
violations, should be avoided or managed through clear governance provisions. Overlapping and perhaps 
contradictory regulations between jurisdictions is also an issue that should be monitored to avoid regulatory 
arbitrage and so that no regulatory vacuum is allowed to develop (i.e. issues slipping through for which no 
authority has explicit responsibility) as well as to minimise the cost of compliance with multiple systems. 
When regulatory responsibilities or oversight are delegated to non-public bodies, notably stock exchanges, 
it is desirable to explicitly assess why, and under what circumstances, such delegation is desirable. In 
addition, the public authority should maintain effective safeguards to ensure that the delegated authority is 
applied fairly, consistently, and in accordance with the law. It is also essential that the governance structure 
of any such delegated institution be transparent and encompass the public interest, including appropriate 
safeguards to address potential conflicts of interest.