In relation to the globalization and progressive integration of the financial market the regulators should be able to assess the nature of performed cross-border operations, if they are going to guarantee the existence of the honest, effi-cient, effective, transparent and stable markets. For this purpose there must be appropriate and effective legal and tax frameworks resulting from the accounting principles and thus IOSCO developed the set of appropriate legal frameworks that should be governed by the legislation of a given juridical area and exerting specific influence on financial markets7.
In the opinion of IOSCO the financial system stability is influenced by the principles observed by the financial intermediaries. They should pursue their ac-tivity so as to protect the interests of their customers and contribute to the market honesty maintenance. The regulations concerning financial intermediaries should meet the following standards: reliability and diligence, conditions for assuming an obligation, information about customers, information for customers, cus-tomer’s assets, market practice, operational control, conflicts of interests, con-cluding transaction at own account8. The principles of intermediaries’ licensing and their supervising are important to ensure the stability. They should decrease the risk of losses that investors may incur as a result of the careless or illegal conduct or as a result of insufficient capital at the disposal of an investor9.
To improve the financial stability IOSCO decided to regulate the issues of rating agencies’ activity and for this purpose the organization implemented the template document of conduct called the Code of Conduct Fundamentals For Credit Rating Agencies (CRA)”, developed and published for the first time in December 2004 and updated in May 2008. The Code updating was signaled by IOSCO in the report presenting the issues related to CRA so that it would
7 Set of legal frameworks is available in the Methodology…, op. cit., p. 237.
8 Ibid., p. 177.
9 Risk management practices and regulator capital – cross-sectoral comparison. Joint Forum on Financial Conglomerates, IOSCO Public Document No. 122, November 2001, and the Method-ology…, op. cit., p. 180.
Blandyna Puszer 152
ify the agency’s actions within the area of structured financial products10. In ad-dition to that the organization prepared the document presenting the principles of their activity in various jurisdictions showing differences arising from the mar-ket specificity and the legal system within the framework of which it operates. It also presents mechanism and principles which they may be subject to, particu-larly in the situation of presenting ratings and opinions11.
IOSCO is of the opinion that the provision of the financial stability requires the operation of formal and informal mechanisms concerning the cooperation on the international level so as to facilitate the detection and fight against inappro-priate actions taken within the territory of many countries. The Multilateral Memorandum of Understanding – MMoU adopted by IOSCO is an example of such mechanism, on the basis of which member states undertake to cooperate and assist one another within the exchange of information used for the purpose of market supervision. It establishes the principles of multilateral cooperation aimed at the fight against crimes on markets. The objective of concluded agree-ments is to set the foundations for mutual exchange of information and the tight-ening of cooperation that is indispensable in the globalization conditions of fi-nancial markets12.
Summary
In relation to the globalization and progressive integration of the securities and derivatives market the possibility to assess the nature of conducted cross-border transactions should be ensured, if they intend to provide honest, efficient, effective, transparent and stable markets. With regard to the foregoing in 2010 IOSCO defined strategic directions of its activity indispensable for the further effective and stable development of securities market. The following priorities were set: identifying and solving problems related to the system risk, maintain-ing the hitherto role within developmaintain-ing and implementmaintain-ing strategies regulatmaintain-ing the securities market, strengthening the international cooperation13.
The actions taken by IOSCO are to contribute to the improvement of the stability on securities and derivatives markets and to find a remedy for the struc-tural weakness in economies.
10 The role of credit rating agencies in structured finance markets – final report. IOSCO, May 2008.
11 A review of implementation of the IOSCO code of conduct fundamentals for credit rating agen-cies. IOSCO, March 2009.
12 Multilateral memorandum of understanding, concerning consultation and cooperation and the exchange of information. IOSCO, May 2002, various pages.
13 Resolution on IOSCO’s mission, goals and priorities. IOSCO, June 2010, p. 3.
The rise of IOSCO for the strengthening of the international financial system 153
References
A review of implementation of the IOSCO code of conduct fundamentals for credit rating agencies. IOSCO, March 2009.
IOSCO statute, materials provided by Komisja Nadzoru Finansowego (Polish Financial Supervision) www.knf.gov.pl
Methodology for assessing implementation of the IOSCO objectives and principles of se-curities regulation. IOSCO, September 2011, p. 11-12.
Multilateral memorandum of understanding, concerning consultation and cooperation and the exchange of information. IOSCO, May 2002, various pages.
Puszer B.: Międzynarodowa Organizacja Komisji Papierów Wartościowych (IOSCO) – jej znaczenie w stabilizowaniu systemu finansowego ze szczególnym uwzględnie-niem systemu bankowego. W: Stabilność i bezpieczeństwo systemu bankowego.
Red. J. Nowakowski, T. Famulska. Difin, Warszawa 2008.
Resolution on IOSCO’s mission, goals and priorities. IOSCO, June 2010.
Risk management practices and regulator capital – cross-sectoral comparison. Joint Forum on Financial Conglomerates, IOSCO Public Document No. 122, November 2001.
The role of credit rating agencies in structured finance markets – final report. IOSCO, May 2008.
Żabińska J., Sarnik-Sawicka A.: Forum Stabilności Finansowej jako organizacja nadzo-rująca i monitonadzo-rująca międzynarodowy rynek finansowy. W: Rola międzynarodo-wej współpracy finansomiędzynarodo-wej w tworzeniu norm i regulacji ostrożnościowych zabez-pieczających stabilność systemów finansowych. Red. J. Żabińska. Akademia Ekonomiczna w Katowicach, Katowice 2008.
WZROST ZNACZENIA IOSCO DLA WZMOCNIENIA STABILNOŚCI MIĘDZYNARODOWEGO SYSTEMU FINANSOWEGO
Streszczenie
Międzynarodowa Organizacja Komisji Papierów Wartościowych (IOSCO) jest najważniejszą międzynarodową organizacją zajmującą się regulowaniem rynków kapita-łowych, skupiającą organy regulujące i nadzorujące ten rynek, ponoszące codzienną odpowiedzialność za wprowadzenie i stosowanie przepisów dotyczących papierów wartościowych. Do obszarów zainteresowań IOSCO należy: współpraca w zakresie ustanawiania wspólnych standardów regulacyjnych mających na celu wspieranie uczci-wego i sprawnego funkcjonowania rynków finansowych; wzajemna wymiana doświad-czeń i informacji w celu doskonalenia funkcjonowania krajowych rynków papierów warto-ściowych; wspólne działania na rzecz ustanowienia standardów i efektywnego nadzoru nad międzynarodowymi transakcjami papierami wartościowymi; wzajemna pomoc w zakresie zapewnienia bezpieczeństwa rynków papierów wartościowych poprzez rygorystyczne przestrzeganie standardów i przeciwdziałanie przestępstwom finansowym. Celem opraco-wania jest przedstawienie znaczenia IOSCO dla wzmocnienia stabilności międzynarodo-wego systemu finansomiędzynarodo-wego. W związku z tym IOSCO wyznaczyła następujące priorytety:
identyfikacja oraz rozwiązywanie problemów związanych z ryzykiem systemowym, utrzymanie dotychczasowej roli w opracowywaniu i wdrażaniu standardów regulujących rynek papierów wartościowych, wzmocnienie współpracy międzynarodowej.