The International Organization of Securities Commissions (IOSCO) has revised its Objectives and Principles of Securities Regulation – an agreed set of high-level global standards – incorporating eight new principles, based on the lessons learned from the recent financial crisis and subsequent changes in the regulatory environment. These Principles are designed to strengthen the global regulatory system against future crises. (See yesterday’s [Report](

The eight new principles cover specific policy areas such as hedge funds, credit rating agencies and auditor independence and oversight, in addition to broader areas including monitoring, mitigating and managing systemic risk; regularly reviewing the perimeter of regulation; and requiring that conflicts of interest and misalignment of incentives are avoided, eliminated, disclosed or otherwise managed.

IOSCO maintains that the proper implementation of the Principles by securities regulators is critical to the creation and maintenance of a sound global regulatory system. The Principles also play an important role in promoting a sound global financial regulatory system through their use by the International Monetary Fund (IMF) and World Bank assessors in the performance of the securities sector element of country Financial Sector Assessment Programs.