IOSCO report on strengthening financial markets
05 Mar 2005
The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published a Report on Strengthening Capital Markets Against Financial Fraud.
The report is based on a study of recent financial scandals involving large, global companies. IOSCO's goal is to identify possible weaknesses to the international financial system and decide how those weaknesses can be addressed. The report identifies seven separate areas that have figured prominently in many recent high-profile financial scandals:
- Corporate governance, including the role of independent directors, protection of minority shareholders, auditor oversight, and conflicts of interest presented by related-party transactions;
- Auditors and audit standards, including auditor independence and auditor rotation;
- Issuer disclosure requirements, including management's discussion and analysis of material events and factors likely to have an impact on the issuer;
- Bond market regulation and transparency, including issuer disclosures and the transparency of bond market price-setting mechanisms;
- The role and obligations of market intermediaries;
- The use of complex corporate structures and special purpose entities; and,
- The analytical integrity and independence of private-sector information analysts.
- IOSCO Report (PDF 343k)
- IOSCO Press Release (PDF 237k)