Wednesday June 17 2015
News Source: Global Exchanges
Focus: Trading Rules
Type: General
Country: International
Link: http://www.iosco.org/library/pubdocs/pdf/IOSCOPD490.pdf
The International Organization of Securities Commissions has published the report on Credible Deterrence, which identifies key enforcement factors that may deter misconduct in international securities and investment markets.
The report identifies key elements in the prevention of misconduct and financial crime from a range of international regulatory authorities and encourages regulators operating in both emerging and developed markets to consider how they might integrate credible deterrence into new or existing enforcement strategies.
The IOSCO report includes real examples of effective approaches to achieve deterrence, including timeliness of enforcement intervention, individual accountability and robust sanctions. Other examples reflect new techniques and practices to deter unlawful conduct. The report identifies seven key elements for credible deterrence:
- Legal certainty: Consequences for misconduct must be certain and predictable;
- Detecting misconduct: Regulators must be well connected and obtain the right information;
- Co-operation and collaboration: Safe havens must be eliminated by working together;
- Investigation and prosecution of misconduct: Enforcement must be bold and resolute;
- Sanctions: Strong punishments must be given to wrongdoers so as to stop them profiting from misconduct;
- Public messaging: Public understanding, transparency and caution must be promoted;
- Regulatory governance: Good governance is necessary to deliver better enforcement.
Click on the link above for further details.