The International Organization of Securities Commissions (IOSCO) set out its strategic direction for the next five years in a report published on Tuesday.
Although the organization of securities regulators largely intends to stay on track in its role as a global standard setter for securities markets, the IOSCO report also acknowledges the need to tackle emerging issues.
As a result, IOSCO’s research will also take on risks posed by product, technological and market developments to investors; and will address the fair, efficient and transparent operation of markets, the IOSCO report indicates “This need has been reflected in the research and risk identification priority and action plans,” it says.
“IOSCO’s research work should focus more broadly on risks faced by member jurisdictions to investor protection and/or fair, efficient and transparent functioning of markets arising from securities markets, including market activities, technology and product developments, and unintended consequences of changes or proposed changes in laws and regulations,” the IOSCO report notes.
That work should be more member-driven and should incorporate input from different IOSCO committees and the board, the report adds. And, formal mechanisms should be developed to identify emerging risks, the IOSCO report says.
In addition, the organization is seeing an increased demand for capacity building among its members that are based in growth and emerging markets, the IOSCO report notes, as well as a growing need to work with other international bodies (such as the Financial Stability Board (FSB)) in addressing global and cross sectoral issues, which also necessitates efforts to ensure the views of members are reflected in developing responses to global regulatory issues.
The IOSCO report also contemplates more intense efforts at implementation monitoring and assessment to encourage timely and consistent adoption of IOSCO standards and policy guidance.