Study On International Organization Of Securities Commissions

International Organization of Securities Commissions (IOSCO) is the primary international organization of securities regulation. Its members are drawn from over 100 jurisdictions and regulate more than 95% of the world's securities markets. IOSCO plays an important role in the international cooperation of securities regulation and it has made a great effort to foster international cooperation. IOSCO has issued innumerable resolutions and reports, in which Objectives and Principles of Securities Regulation and Multilateral Memorandum of Understanding are critical to promote the high regulatory standards of regulation among the jurisdictions and facilitate the cross-border cooperation as combating international financial fraud. And IOSCO has tremendous influence on the development of international norms for the regulation of securities and is recognized as the international standard setter for securities markets.IOSCO is not a formal organization, but a transnational regulatory network. Its operation and regulation base on this characteristics. The principles promulgated by IOSCO are nonbinding on its members, though members undertake "to use their best endeavors within their jurisdiction to ensure adherence" to the organization's principles. The nonbinding nature of IOSCO's resolutions is reflective of the organization's predilection towards flexibility.To us, the intensive study of IOSCO contribute to grasp the situation and the trend of international securities regulation and will has great influence on improving the level of regulation and enhancing international cooperation. In 1995, China Securities Regulatory Commission joined IOSCO. We should understand the IOSCO in depth, such as the operation, achievements and limitations. Doing so is beneficial for China Securities Regulatory Commission to upgrade status in IOSCO and affect norms for the regulation of securities. Meanwhile. And other informal international organizations may draw lessons from IOSCO so that they can better develop.This Article acknowledges IOSCO is a transnational regulatory network and examines IOSCO history and operation, the form and scope of regulation, important documents, namely achievements, soft law, limits and effectiveness and effects on regulation of securities in our country through historical analysis, theoretical analysis and case study. This Article consists of six parts:PartⅠof this Article is a basic introduction of IOSCO, including its history, membership categories and application process, structure and characteristics as a transnational regulatory network.PartⅡsets forth the form and scope of IOSCO. The regulation of IOSCO is not mandatory, however, its members usually turn the reports and standards published by IOSCO into their domestic laws. The IOSCO's regulatory scope is extensive, involving most aspects of securities market. This Part lists several aspects of its regulation.PartⅢdiscusses the two leading documents"Objectives and Principles of Securities Regulation"and"Multilateral Memorandum of Understanding", which are the greatest achievements made by IOSCO. The two documents are very important to promot the high regulatory standards of regulation and facilitate the international cooperation as combating international financial fraud.PartⅣdiscloses the standards of IOSCO is soft law and analyses the reasons and results of adopting soft law. Soft law reflects the informality and flexibility of IOSCO.PartⅤanalyses IOSCO's limits and effectiveness based on the characteristics of transnational regulatory network, examines the domestic constraints and international cooperative problems faced by IOSCO and discusses the situation of effectiveness. Part VI reviews the influence on the regulation of securities in our country had by IOSCO and gives advice on how to participate in the regulation of IOSCO.