Incorporation and endorsement: the EU, transnational networks, and private financial standards

Transnational regulatory networks (such as the Basel Committee, the Financial Stability Board (FSB) and the Iosco) and private actors (such as the International Accounting Standards Board (IASB)) have long been setting global financial standards, lacking formal binding force, but often perceived as having a hard impact. The implementation of financial standards coming from transnational networks through incorporation in binding acts has been criticized as a “mere copycat exercise” of the norms set in the network of experts, leading the EU Parliament to criticize the accountability deficit resulting from this process. Private standards set by the IASB, on the contrary, are the object of an endorsement procedure, in which the EU retains some veto powers. How can different implementation models be explained? Can the EU’s participation in global decision making process – for which the EP is advocating – compensate for the lack of accountability of the incorporation process?