Ms. Gill Marcus, Deputy Minister of Finance, Republic of South Africa; Dr. Chris de Swardt, Chairman of the Financial Services Board; Distinguished Ladies and gentlemen.
On behalf of IOSCO's Emerging Market Committee I would like to thank the Financial Services Board of South Africa and the members of its staff for all the arrangements they have made in organising this conference and in making our stay in this beautiful country and enjoyable and memorable one. Even the weather has chipped in to ensure we do not forget this great experience.
Of course, although the formal EMC meeting proper starts today, various meetings have been held since last Sunday afternoon, when the EMC Steering Committee met, with two workshops and the various EMC Working Group meetings being held on Monday and Tuesday. Just last evening we experienced an unforgettable cultural event and this evening we anticipate yet another memorable occasion, perhaps of a more contemporary kind. Now this is going some. So when I say thank you I do not only mean it but actually do know what for - for the FSB's efficient organisation and warm hospitality. What I would like to add at this juncture is to thank also all those who have helped organise and participated in the various meetings and events, including the paper presenters at the workshops and the Brazilian and Thai commissions which organised them.
As Chairman of the EMC, I would like to formally welcome members of IOSCO'S largest and most challenging committee to this conference. The challenges facing this committee are formidable. Its sheer size and diversity alone present a huge task in the EMC's developmental programme of work which must be relevant, useful and timely to the whole spectrum of the membership, at a time of rapid technological change and globalisation of capital markets.
Far from establishing regulatory principles and practices, even established principles and practices of regulating securities and futures markets are being swept aside by the winds, perhaps hurricane might be a better word, of change. Notice, the sweeping regulatory reform already set by the new Labour government in the UK, and the major initiative being planned by the US Securities and Exchange Commission. Then again, there is the substantial Wallis report in Australia which was released early in April, proposing a regrouping of regulatory responsibilities which would result in a super - ASC (the Australian Securities Commission). These proposed structural changes in the regulatory structure are taking place at a time when technology is already forcing the pace of change in the securities and futures industry and, perforce, those of surveillance, investigation and enforcement by the regulator.
In the midst of a fundamental regulatory review, globalisation of markets and the challenge of electronic commerce, what should the EMC be doing? Of course it cannot be doing everything and, I must emphasise, there is no substitute for commitment and prioritisation at the national level to establishing efficient, fair and stable capital markets. But resources are not evenly distributed, and the EMC can help its members keep pace with the rapid changes taking place which I have only generally described. This is working through the Working Group arrangement around which the EMC organises its programme, but it must be made to work even better. The Working Groups, even if they do not have identical mandates with their counterpart Working parties of the Technical Committee of IOSCO, should monitor closely their progress, through committed participation, of the Working Party mandates so that the evolution of thought and likely outcome is discussed in the EMC Working Group, and through it, passed on to the general membership. In this way, everyone can be brought up to speed, there will be no surprises, and expectations can be managed. Importantly, there will be effective and meaningful EMC participation in the development of markets, and of the methods, rules and regulations to manage them. On top of this, there are now any number of policy papers that are being requested of IOSCO which the Technical Committee is largely formulating. It is important that EMC participation and input are obtained in this process, so that what may go out as the IOSCO position has EMC involvement.
All this places a heavy burden on the EMC Working Group members, particularly the chairmen who will at least be expected to attend and participate in such meetings, and then report back at Working Group and EMC levels. But I am confident that from the commitment shown thus far, since 1994, Working Group Chairmen and at least some of their member would be willing to play this leadership role within the EMC. Actually, this is already happening. I would like it to be understood as a commitment and responsibility, and to be extended to participation in IOSCO policy formulation. While being of immense use and benefit to the EMC membership, such participation is not without benefit to the individual commission concerned. The whole process is a positive - sum game for our organisation - IOSCO.
If I may, for a moment, speak as Chairman of the Malaysian Securities Commission, I would like to underline our commitment to this process which we also see as the capital markets dimension to South - South and international cooperation. We are committed at the bilateral, regional and here, at the multilateral level to share experiences, to learn and to develop together. Coming back to the Working Groups of EMC, they will of course continue with their mandates and work programmes, including organising workshops at conferences such as this, based on relevance and need, not forgetting that of the less developed within the EMC itself. Our membership, at 56, is large, as is our writ. We have our work cut out for us. But we are on the right track. Although the challenges keep mounting, with renewed commitment, and added vigour and rigour, we can take them on. Our work today is especially important, but so is the necessary follow-up and follow through in between our formal meetings.
If I do not get the opportunity to individually meet those among you returning to your home countries after today's meeting, can I extend to each and everyone of you, my best wishes till we meet again.
Thank you.
