In 2008, the SC voluntarily underwent an independent assessment to benchmark its compliance with the IOSCO Objectives and Principles of Securities Regulation (IOSCO Principles).
The assessment was based on 30 core principles developed by IOSCO, the world’s most important international policy forum for securities regulators.
The IOSCO Principles, adopted in September 1998, are the key global standard for securities market regulation, whose main objectives are to protect investors, to ensure fair, efficient and transparent securities markets and to reduce systemic risk. The Principles are used by International Financial Institutions such as the World Bank and the International Monetary Fund to assess a country’s practice of regulation and supervision of securities markets, and are among twelve standards and codes highlighted by the Financial Stability Forum as key to sound financial systems and deserving priority implementation.
Approach adopted for the assessment
The assessment of Principles 1-29 was made using the IOSCO Principles and the Methodology for Assessing Implementation of the IOSCO Principles, while the assessment of Principle 30 was made using the Committee on Payment and Settlement Systems/IOSCO Recommendations for Securities Settlement Systems and the associated Assessment Methodology.
The IOSCO Assessment was conducted by a team of four international securities market regulatory experts from February – October 2008. It involved a detailed self-assessment report prepared by the SC, followed by an extensive review and detailed discussions by the assessors with the SC and Bursa Malaysia during the onsite visit to Malaysia in August 2008.
The summary of the assessment is available here.