Principles Of International Organization Of Securities Commissions And Implications For China

This dissertation begins with the leading document of the IOSCO, Objective and Principles of Securities Regulation, by stating and analyzing the principles in three aspects: Regulator, Self-Regulation and Cooperation in Regulation and focuses on their implications for China, in particular the problems in the regulatory system. The principles relating to the Regulator are as follows: clear responsibilities, independent and accountable operation, adequate powers, proper resources, and consistent regulatory processes. The staff of the regulator should observe the highest professional standards including appropriate standards of confidentiality. By stating the problems of the regulator in China, we propose that the Securities Regulatory Commission should have adequate and independent powers in the exercise of its functions in accordance with securities laws. Referring to the principles for Self-Regulation, direct oversight is required to ensure that Self-regulatory Organizations make appropriate use of their powers. However, the situations in China show that the functions of Self-Regulatory Organizations in securities market are under development. Therefore, we suggest that more attention should be paid to the effect of Self-Regulatory Organizations in securities market.As far as the cooperation in regulation is concerned, the regulator should be available to public and non-public information with domestic and foreign counterparts and the regulatory system should allow for assistance to be provided to foreign regulators who need to make inquires in the discharge of their functions and exercise of their powers. Besides the conflicts of laws among different countries, the difficulties in international cooperation in China are mainly caused by the defects in its regulatory system. Thus, an international regulatory framework and information sharing mechanisms are needed to improve the situations in cooperation. All these opinions are based on the objectives on the protection of investors, ensuring that markets are fair, efficient and transparent and the reduction of systemic risk.