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Key Standards and Self Assessments-Code 11

11. Objectives and Principles of Securities Regulation

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Securities and derivatives markets are vital to the growth, development and strength of market economies. Properly designed securities and derivatives markets permit efficient capital formation and risk management activities subject to appropriate protections of customers and the market. As such they support the financing of innovative ventures, secure collective investment and economic growth. Recognizing that sound and effective regulation and, in turn, the confidence it brings, are important for the integrity, growth and development of securities markets, IOSCO adopted the Objectives and Principles of Securities Regulation. The Objectives and Principles provide advice and a yardstick against which progress toward effective regulation can be measured.

The document sets out three objectives:

  • the protection of investors;
  • ensuring that markets are fair, efficient and transparent; and
  • the reduction of systemic risk.

The document also sets out 30 principles of securities regulation that give practical effect to the objectives.

Last Updated: 12/1/2010 8:46 AM