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Peru’s Financial Regulation Lags Behind International Standards, Says IFAC

Lima, Peru - The International Federation of Accountants (IFAC) has released a report criticizing Peru’s financial regulation system for failing to align with international standards.

Lack of Alignment with International Standards

According to the report, the Superintendence of Banking, Insurance, and Pensions (SBS) and the Superintendence of Securities Markets (SMV), which are responsible for setting regulations for their respective sectors, have not fully implemented international standards. This lack of alignment could lead to inconsistencies in financial reporting and auditing practices.

Concerns about Integrity and Reliability of Financial Markets

“We are concerned about the potential impact of these inconsistencies on the integrity and reliability of financial markets,” said IFAC’s Chief Executive Officer. “We urge the Peruvian authorities to take immediate action to address these issues and bring their regulations in line with international standards.”

Areas for Improvement

The report highlights several areas where Peru needs to improve, including:

  • Accounting Standards: While Peru has adopted International Financial Reporting Standards (IFRS), there are still inconsistencies in its application.
  • Auditing Standards: The report found that the country’s auditing practices do not fully comply with international standards.
  • Investigative and Disciplinary Procedures: The JDCCPP has identified gaps in its procedures, which could hinder the effective resolution of ethics breaches.

Call to Action

The IFAC is urging the Peruvian authorities to take immediate action to address these issues and bring their regulations in line with international standards. The organization believes that this will not only improve the integrity and reliability of financial markets but also enhance investor confidence.

Relevant Organizations

  • Junta de Decanos de Colegios de Contadores Publicos del Peru (JDCCPP)
  • Consejo Normativo de Contabilidad (MEF)
  • Superintendente de Bancos, Seguros, y AFP (SBS)
  • Superintendencia del Mercado de Valores (SMV)

Relevant Legislation

  • Code of Commerce of 1902
  • Company Law of 1997
  • DGCP, Resolution Nº 059-2015-EF/30 of 2015
  • DGCP, Resolution No. 045-2010-EF/94 of 2010
  • DGCP, Resolution No. 010-2018-EF/51.01 of 2018
  • Law No. 28708 of 1987
  • Law No. 25892 of 1992
  • Law No. 28708 of 2006
  • Law No. 28951 of 2007
  • SMV, Resolution No. 011 of 2012
  • SBS, Resolution No. 7036 of 2012

Relevant Publications

  • JDCCPP, SMO Action Plan, 2022.
  • IFRS Foundation, IFRS Application Around the World, Jurisdictional Profile: Peru, June 2016.
  • World Bank, Report on the Observance of Standards and Codes: Accounting and Auditing, Peru, June 2004.