IOSCO chairman-elect outlines priorities going forward

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  • ASIC (Australian Securities and Investments Commission) (dk gray) Image

22 Oct 2012

The Australian Securities and Investments Commission (ASIC) has publicly released a transcript of a speech given by Greg Medcraft, current ASIC Chair and chairman-elect of the International Organization of Securities Organisations (IOSCO), to the International Centre for Financial Regulation in September 2012. In the speech, Mr Medcraft outlines his views on the key challenges facing IOSCO and his suggested strategies to address those challenges, including a greater role for industry.

The three key challenges for IOSCO as suggested by Mr Medcraft are:

  1. The migration of savings from the banking regulatory perimeter to the securities perimeter and with it the increased significance of securities regulation, driven by banking regulation and the search for yield
  2. The pace of financial innovation and the ongoing risk that it will outpace regulation, which historically has been shown to lead to crises
  3. Continuing globalisation of financial markets and products, requiring a global approach to regulation.

In response, Mr Medcraft suggests the following strategies:

  • Engagement with regulators, industry and policy makers - including inviting industry leaders to IOSCO’s board meeting later in 2012 to discuss industry’s views of emerging risks and issues in securities markets
  • Co-operation in enforcement and investigations, and providing technical assistance to regulators in emerging markets - and also co-operating with industry
  • Evolving from setting best practice principles to setting standards for member organisations, by moving to a majority rather than consensus decision making approach and greater mutual recognition.

In concluding his speech, Mr Medcraft noted:

So, in summary, my vision is for IOSCO to develop into an effective, forward-looking and proactive organisation which is the key authoritative body for securities regulation. I aim to meet this challenge with a strategy based on each of the elements I’ve outlined: engagement, cooperation and standard setting.

Mr Medcraft appointment as chairman-elect of IOSCO was announced in May 2012, with his term commencing in March 2013.

Click for access to the full text of the speech (link to the ASIC website)

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