Essays on Problem with Maintaining Compliance with the IOSCO Principles Coursework

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The paper "Problem with Maintaining Compliance with the IOSCO Principles" is a perfect example of marketing coursework.   The international Organization of securities commissions (IOSCO) was developed as a result of the transformation from an inter-American regional association of securities regulators. IOSCO was therefore transformed to become a security body that deals with international financial management. The company is responsible for regulating financial securities, and it operates in approximately a hundred countries in the world. The main agenda of IOSCO is to regulate finances through regulating securities it also provides a forum from which countries are able to present their views concerning security regulation.

It, therefore, acts as an international finance body that ensures the settlement of the financial crisis in the member countries. Since the endorsement of IOSCO as a financial regulator, it has been able to settle various issues related to finances in many countries, for example, the financial tragedy that befell Asia in the year 1998, this forced IOSCO to develop some strategies intended to curb the financial crisis. The framework established to regulate market securities, the effects of intermediaries, the bodies that issue securities and those that collect schemes that relate to investment.

These principals developed by IOSCO were for the purpose of reducing the rate of the escalating financial crisis in many countries. However, some years later the financial regulation body discovered that the principles intended to regulate finances were not sufficient enough to prevent financial risks. The revision of objectives and principles by IOSCO resulted in the addition of more principles which focused on more regulatory measure against risks that affect global markets. Despite the efforts made by IOSCO to prevent financial crisis and the revision of its principles, other financial regulators globally did not concur with the body, this was a challenge because the main purpose of the body was to control risks associated with finances in the countries while other regulators focused their interest in regulating the banking systems of their member countries.

It is crystal clear that the purposes of securities markets are to control and regulate financial stability and economic growth as well. This in relation to financial regulation entails the transformation of savings in order to finance for a real sector.

Therefore, when there are disparities on the principles intended to ensure that savings are transformed into sectoral management, it affects the banking systems globally and results in challenges in global markets. There are challenges brought by intermediaries when it comes to the banking systems, the bodies that regulate banking systems have not been able to combat these challenges and, therefore, the introduction of principles and regulations by IOSCO had the main purpose to reduce risks posed by intermediaries. IOSCO calls for transparency when it comes to the capital markets because it will motivate more countries to adhere to the principles and regulation of controlling financial crisis.

Other sectors such as trading also fall part of financial risks globally because they contribute to competition and the impact on global markets thus posing risks to the banking systems as well. Therefore, the revision of financial regulation principles by IOSCO was intended to respond to the financial crisis that was encountered in the year 2008 globally.

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