International Organisation of Securities Commissions (IOSCO)

Why is it important?

IOSCO[1] is a FSB member, and one of the key players in its work on regulating food and commodities markets, and dealing with financial institutions that are "too big to fail". IOSCO’s Principles of securities regulation aim to protect investors; ensure fair, efficient and transparent markets; and reduce systemic risk. Principles cover Regulators; Self-Regulation; Enforcement of Securities Regulation; Cooperation in Regulation; Issuers; Auditors, Credit Rating Agencies, and other information providers; Collective Investment Schemes; Market Intermediaries; and Secondary Markets.

Organisation and membership

The General Secretariat is located in Madrid, Spain. The Secretary General Greg Tanzer and Deputy SG Tajinder Singh are supported by a staff of 17.

IOSCO comprises three Committees, which have their own sub-committees:

• President’s Committee (under which are Regional Committees for Africa / Middle East, Asia-Pacific, Interamerica, and Europe)
• Executive Committee (under which are the Technical Committee and Emerging Markets Committee)
• SRO Consultative Committee

The table below presents the LIC representatives each of who sit on the President’s Committee, Emerging Markets Committee, and respective Regional Committee.

No LICs are represented on the Executive Committee, Technical Committee, Emerging Markets Committee Advisory Board, or the SRO Consultative Committee.

President's Committee

The Chair is the Chair of the Annual Meeting who is president of the ordinary member hosting the Annual Meeting. If the Annual Meeting is not hosted by an ordinary member then the Executive Committee appoints the Annual Meeting Chair. LIC representation is very low relative to participation by other countries and sub-national organisations. The Committee meets annually at Annual Meeting. The 2010 meeting was hosted by the Autorité des marchés financiers of Quebec. The 2011 meeting will be held in Cape Town, and the 2012 meeting in Beijing[2].

The Committee is represented by Chairs, Presidents, Governors, Permanent Secretaries, Executive Directors, Superintendents of Central Banks and Financial Supervisory Authorities.

Africa / Middle-East Regional Committee[3]

The Chair is Arunma Oteh (Nigeria), and Second Representative Hassan Boulaknadal (Morocco). Other members (in addition to the above LICs) include Algeria, Bahrain, Egypt, Israel, Jordan, Mauritius, Morocco, Nigeria, Oman, Saudi Arabia, South Africa, Syria, Tunisia, UAE. The Associate (Non-Voting) Member is Dubai.

Asia-Pacific Regional Committee[4]

The Chair is C. B. Bhave (India) and Second Representative Jane Diplock (New Zealand). Other members (in addition to Kyrgyz) include Australia, Bangladesh, Brunei, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Maldives, Mongolia, New Zealand, Pakistan, Papua New Guinea, Philippines, Singapore, Sri Lanka, Chinese Taipei, Thailand, and Vietnam. Associate (Non-Voting) Members are from India, Japan, and Korea, Labuan.

Executive Committee

The Chair is Jane Diplock (New Zealand). Members (19) presently include no LICs. They are the Chairs of the Technical Committee (Netherlands), Emerging Markets Committee (Turkey), each Regional Committee (Nigeria, India, Portugal, Uruguay), 1 ordinary member elected by each Regional Committee from among ordinary members of that region (Belgium, Morocco, New Zealand, Quebec), and 9 ordinary members elected by the Presidents' Committee (Australia, Brazil, China, France, Germany, Japan, South Africa, UK, USA). Meetings take place periodically during the year to decide on actions. Specialized working committees include the Technical Committee, and Emerging Markets Committee.

Technical Committee[5]

This aims to review major regulatory issues related to international securities and futures transactions and coordinate practical responses. The Chair is Hans Hoogervorst (Netherlands) and Deputy Chair Masamichi Kono (Japan). Members (18 agencies that regulate some of the world's larger, more developed and internationalized markets) include no LICs (Australia, Brazil, China, France, Germany, Hong Kong, India, Italy, Japan, Mexico, Netherlands, Ontario, Quebec, Spain, Switzerland, UK, USA). Dedicated Standing Committees deal with Multinational Disclosure and Accounting; Regulation of Secondary Markets; Regulation of Market Intermediaries; Enforcement and the Exchange of Information; Investment Management; and Credit Rating Agencies. Members meet regularly to work on the mandates they receive from the Technical Committee.

Emerging Markets Committee[6]

This aims to promote development and improve efficiency of emerging securities and futures markets by establishing principles and minimum standards; preparing training programs for members’ staff; and facilitating the exchange of information and transfer of technology and expertise. The Chair is Vedat Akgiray (Turkey), and Vice-Chair Zarinah Anwar (Malaysia). Members (84) include the following LICs: Bangladesh, Ghana, Kenya, Kyrgyz Rep, Malawi, Tanzania, Uganda, WAMU, and Zambia[7]. Dedicated Working Groups address Disclosure and Accounting; Regulation of Secondary Markets; Regulation of Market Intermediaries; and Enforcement and the Exchange of Information; Investment Management.

Self-Regulatory Organisation Consultative Committee (SROCC)[8]

This “Working Committee” aims to give input related to the Technical Committee’s regulatory initiatives and maintenance of dialogue between IOSCO and SROs. The Chair is Yoshio Okubo (Japan). Members (67 SROs) include no LICs[9]. The website provides further information about each member[10]. SROCC maintains contact with the Technical Committee Standing Committees through designated contact persons.