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Which organization can be regarded as the most influential globally when it comes to Capital Markets legislation?

Lum Tissington

Hey there!

When it comes to Capital Markets legislation, there is an organization that certainly stands out as the most influential globally: the International Organization of Securities Commissions (IOSCO).

IOSCO is a global body comprised of securities regulators from more than 115 countries, including the U.S. Securities and Exchange Commission (SEC) and the UK Financial Conduct Authority (FCA). Its main purpose is to develop, promote, and implement international securities standards to protect investors and ensure fair and efficient markets.

IOSCO has played a key role in shaping the regulatory landscape of Capital Markets around the world, particularly in response to the aftermath of the financial crisis of 2008. Its efforts have led to the creation of several important regulatory frameworks, including the Principles for Financial Market Infrastructures, the Code of Conduct Fundamentals for Credit Rating Agencies, and the Principles for the Valuation of Collective Investment Schemes.

Alongside these frameworks, IOSCO has also been active in developing policy recommendations and best practices for member countries to follow. For example, it has issued guidelines on topics such as corporate governance, asset management, and risk management, which are widely regarded as highly influential in shaping the approach of national regulators around the world.

Despite its global reach and influence, IOSCO is often criticized for its lack of enforcement power. While it can set standards and make policy recommendations, it has no authority to directly enforce these rules on individual firms or market participants. However, its member regulators do have the authority to enforce IOSCO’s standards within their own jurisdictions, meaning that IOSCO’s influence is ultimately felt through its impact on national legislation and regulation.

Overall, it’s clear that IOSCO is an extremely important organization when it comes to shaping the global framework of Capital Markets legislation. While there are certainly other bodies and organizations that play a key role in this area, IOSCO’s position as a global leader and standard-setter has cemented its status as the most influential organization in this field.

I hope this helps! Let me know if you have any other questions.

Take care!