Tajinder Singh Deputy Secretary General IOSCO

Transcription

1 NEW IOSCO PRINCIPLES AND METHODOLOGY Tajinder Singh Deputy Secretary General IOSCO

2 IOSCO- AB Brief fintroduction IOSCO is recognized as the International Standard setter for Securities Regulation jurisdictions, more than 95% of world capital markets; IOSCO Principles are one of the 12 key standards and codes recognised by FSB as key to sound financial systems IOSCO MOU recognized as a benchmark for international cooperation and enforcement 2

3 IOSCO Objectives And Principles of Securities Regulation Accepted as the international standard for securities regulation Core Objectives - Protecting investors - Fair, efficient and transparent markets - Reducing systemic risk 38 Principles now added 8 Principles in June

4 IOSCO Principles Cover areas relating to: - Regulators - Self regulation - Enforcement and Cooperation - Issuers and Information service providers - Collective Investment Schemes - Market Intermediaries - Secondary Markets Assessment of jurisdictions against Principles- i use of Methodology 4

5 Methodology 38 Principles of Securities Regulation (8 new) Provides interpretation of the Principles Used for assessments (FSAPs, IOSCO assessments, ) Draws upon various IOSCO reports The new IOSCO Principles and Methodology are available at: 5

6 THE REGULATOR [1 through 15] Accountability & Independence General Powers & Resources [1, 2,4 and 5] [1, 3, see also 6, 7 and 8] Enforcement & Cooperation Powers [10 through 15] Issuers [16 through 18] Functions [19 through 38] Auditors, CRAs & other ISP [19 through 23] Intermediaries CIS Secondary Markets [29 through 32] [24 through 28] [33 through 38] 6

7 Revision of the Methodology 2010: The IOSCO President s Committee adopted a revised set of 38 Principles IOSCO reformulated its mission statement: New goals and priorities: maintaining and improving the international regulatory framework for securities markets by setting international standards; identifying and addressing systemic risks; strengthening our role in the international financial community in order to advance implementation of the IOSCO Principles. 7

8 Revision of the Methodology: Highlights h Extensive rounds of consultation with technical groups, regional committees, Emerging Markets Committees, SROCC and members at large within IOSCO. Active involvement of IOSCO Secretariat. High level guidance of the Executive and Technical Committees. Association of the IMF and World Bank. Approval of the new Methodology: September

9 Revision of the Methodology: Structure For each group of principles: Preamble and Scope. For each Principle: i Introduction Key Issues Key Questions Explanatory Notes Benchmarks 9

10 Revision of the Methodology: Eight new principles Based on the lessons learned from the financial crisis and subsequent changes in the regulatory environment. Their proper implementation is critical to the creation and maintenance of a sound global regulatory system. 10

11 Revision of the Methodology: Eight new principles Principle 6: The Regulator should have or contribute to a process to monitor, mitigate and manage systemic risk, appropriate to its mandate. 11

12 Revision of the Methodology: Eight new principles Principle i 7: The Regulator should have or contribute to a process to review the perimeter of regulation regularly. Principle 8: The Regulator should seek to ensure that conflicts of interest and misalignment of incentives are avoided, eliminated, disclosed or otherwise managed. 12

13 Revision of the Methodology: Eight new principles Principle i 7: The Regulator should have or contribute to a process to review the perimeter of regulation regularly. Principle 8: The Regulator should seek to ensure that conflicts of interest and misalignment of incentives are avoided, eliminated, disclosed or otherwise managed. 13

14 Revision of the Methodology: Eight new principles Principle 19: Auditors should be subject to adequate levels of oversight. Principle 20: Auditors should be independent of the issuing entity that they audit. 14

15 Revision of the Methodology: Eight new principles Principle 22: Credit rating agencies should be subject to adequate levels of oversight. The regulatory system should ensure that credit rating agencies whose ratings are used for regulatory purposes are subject to registration and ongoing supervision. Principle 23: Other entities that offer investors analytical or evaluative services should be subject to oversight and regulation appropriate to the impact their activities have on the market or the degree to which the regulatory system relies on them. 15

16 Revision of the Methodology: Eight new principles Pi Principle i 28: Regulation should ensure that hedge funds and/or hedge funds managers/advisers are subject to appropriate oversight. 16

17 ASSESSMENT COMMITTEE: NEXT STEPS New IOSCO Committee set up in February A subgroup (ITF) will play the role of Guardian of the IOSCO Principles and Methodology. First Thematic Peer Review on Principles 6 and 7 to provide guidance in their implementation ti and interpretation. t ti 17

18 THANK YOU 18