Senior figures in the profession have urged world leaders at the G20 summit to agree plans for a global financial regulator at the meeting this week in London.

John Tattersall, chairman of the UK regulatory practice at PricewaterhouseCoopers, called for a global regulatory body to help stabilise the world economy.

He also called for leaders at the G20 summit to explain the principles that will underpin financial regulation and how global regulation will be co-ordinated.

One body to co-ordinate global regulations could be the European Systemic Risk Council, as proposed by the de Larosière High level group on cross-border financial supervision, perhaps based on the IMF, Tattersall said.

‘It would be unrealistic to expect G20 members to agree to cede responsibility for the supervision of their major financial institutions to a super-regional or global micro-prudential regulator, but there is real scope to establish proper dialogue between a global body and supervisors in individual countries,’ Tattersall said. He added that future regulations had to be more effective and ‘smarter’.

Colin Martin, head of financial services technical advisory at KPMG, welcomed the idea of a global regulator, but said no one body was currently big enough for the role.

‘A global regulator won’t happen overnight,’ he said. ‘Infrastructure will have to be built.’

He urged politicians not to rush any changes to international accounting rules in their eagerness to strengthen the banking system. Standards issued without proper consultation risk being ‘not fit for purpose or being open to misinterpretation’, said Martin.