International Organization of Securities Commissions: Report on the Distribution of Complex Financial Products

On January 21, the International Organization of Securities Commissions (IOSCO) published its final report on the suitability requirements for the distribution by intermediaries of complex financial products to both retail and non-retail customers.  The report seeks to promote consumer protection and sets out nine principles to be applied by policy makers at a national level in accordance with the particular types of customers in their jurisdiction.  Rather than giving a precise list of what the IOSCO considers to be complex financial products, the report instead provides criteria by which such products can be determined and identified.

The nine principles at the core of the report concern the following areas: enforcement, incentives, customer classification, overarching duties to all customers (regardless of classification), customer protection for non-advisory services, suitability protection for advisory services, compliance and disclosure.

IOSCO Consults on Rating Agency Internal Controls

On May 25, IOSCO published a consultation report describing internal controls and procedures that rating agencies use to promote the integrity of the rating process and address conflicts of interest. IOSCO is seeking the views of stakeholders and rating agencies to assist it with further analysis of rating agency internal controls and procedures. Comments must be submitted by July 9. IOSCO Release. IOSCO Report.

CPSS and IOSCO Final Report on Principles for Financial Market Infrastructures

On April 16, the Committee on Payment and Settlement Systems (CPSS) and IOSCO published the final report on the Principles for Financial Market Infrastructures, which updates the risk management and related standards applicable to financial market infrastructures. CPSS and IOSCO also released for comment the Disclosure Framework for Financial Market Infrastructures and the Assessment Methodology for the Principles for FMIs and the Responsibilities of Authorities. Comments must be submitted by June 15. SEC Release.

Regulators Seek Comments on Financial Market Infrastructures Report

On March 10, the Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commission (IOSCO) released for comment a report on the Principles for Financial Market Infrastructures. The consultative report contains updated and new proposed international principles for systemically important payment systems, central securities depositories, securities settlement systems, central counterparties, and trade repositories. Comments must be submitted by July 29. SEC Release.