IOSCO issues "credible deterrence" report: IOSCO has published a report titled "Credible Deterrence", which identifies key enforcement factors that may deter misconduct in international securities and investment markets. The report cautions that credible deterrence cannot be one size fits all and regulators must decide what it means for them in the context of their strategic objectives, powers and responsibilities. They also need to take into account their own market, economic and financial situation. The report sets out seven important elements for effective deterrence:

  • legal certainty;
  • detecting misconduct;
  • cooperation and collaboration;
  • investigation and prosecution of misconduct;
  • sanctions;
  • public messaging; and
  • regulatory governance.

Speaking at the launch of the paper, Georgina Philippou, acting director of enforcement at FCA, dismissed criticisms that recent penalties amounting to billions of pounds were damaging the stability of the banking industry. She also signalled there could be some changes in the way FCA handles final notices or details of a misconduct case such as LIBOR or FX rigging. (Source: IOSCO Publishes Report on Credible Deterrence Approaches in Securities Market Regulation)