The rise of transparency as regulation

Two big new EU legislative decisions this month have aligned the EU with the US in creating a strong new precedent for country by country tax and payments reporting requirements for multinational companies. Both epitomize the growing trend since 2008 of using various forms of transparency and disclosure as a regulatory tool. The co-opting of the market and the media into the business of scrutinising companies means new challenges for both corporates and their regulators.