Blog article
See all stories »

IOSCO report: regulators’ supervisory powers need enhancing

The International Organisation of Securities Commissions (IOSCO) has published a consultation report on a comparison and analysis of prudential standards in the securities sector.  The report highlights similarities, differences and gaps among the different regulators’ frameworks.   The report highlights issues in the following areas where regulators may consider whether their supervisory practices are adequate to oversee and mitigate the risk posed by:

·         regulatory scope

·         risk capture;

·         components of capital;

·         comparing prudential standards in different jurisdictions;

·         the use of internal models; and

·         group entities.  

The outcome of the report’s comparative analysis highlights prudential regulatory and supervisory areas that might be considered, particularly to:

•        identify opportunities for regulatory capital arbitrage that might (or actually have) materialised from the differences in prudential regulations across jurisdictions; and

•        account for the increasing use of internal models and the commensurate increase in infrastructure, systems and controls that are necessary to help ensure that firms are not undercapitalised compared to the risks posed by their positions and activities.  

The report includes specific questions on which IOSCO is seeking comments.   

Comments are requested by 10 June 2014.  

Related link:

http://www.iosco.org/library/pubdocs/pdf/IOSCOPD438.pdf

2346

Comments: (0)

Blog group founder

Retired Member

Member since

19 Mar 2009

Location

Blog posts

6,023

Comments

6,224

This post is from a series of posts in the group:

Financial Services Regulation

This network is for financial professionals interested in staying up to date on financial services regulation happening anywhere in the world. CFOs, bankers, fund managers, treasurers welcome.


See all