Global securities regulators have published a report day comparing the prudential standards for regulatory regimes around the world.
The International Organization of Securities Commissions (IOSCO) has published a report that examines the key prudential/capital frameworks for securities firms, highlighting the similarities, differences and gaps among the different frameworks.
The regulators found that many of the key themes identified in its analysis — such as the need for risk-based capital requirements, and the desirability of minimum capital requirements that reflect the type of business being conducted by securities firms — are already reflected in the existing IOSCO capital adequacy standards report.
It those standards are updated, it recommends that areas to focus on should include identifying opportunities for regulatory capital arbitrage that might have arisen from differences in prudential regulations across jurisdictions; and, accounting for the increasing use of internal models in calculating firms’ capital requirements.