The International Organization of Securities Commissions (IOSCO) has published a speech by its Chairperson Jane Diplock (JD). The speech is entitled Who should do what in the global financial architecture... the art of the possible.
At the start of her speech JD discusses how confidence in the financial system, including capital markets, can be rebuilt. This includes a short discussion on the Financial Stability Board and recent initiatives that IOSCO is involved in. JD then discusses the IOSCO model, arguing that the model presented in its Multilateral Memorandum of Understanding concerning consultation and cooperation and the exchange of information could be used more broadly. She also argues that mutual recognition of regulatory frameworks between jurisdictions could also be another way forward to recovery.
In her conclusion JD states that while there will be greater coordination and cross-sectoral work at the global level, it will remain the obligation of national regulators and policy-makers to bring about change on the ground. JD believes that a series of networked solutions will be developed and these solutions will require the cooperation of all the major players in the global financial architecture as well as commitment at the national jurisdictional level. These solutions will require high sets of robust global standards constantly updated to reflect market changes, effective enforcement capacity across borders and careful supervision across the world on stability issues.
View IOSCO speech - Who should do what in the global financial architecture... the art of the possible, (PDF 243KB), 22 April 2009