The Future of Self-Regulation in Securities Markets. Clemente L. del Valle Lead Capital Markets Specialist April 30 th 2010. Agenda. Main Objective and Scope International Regulation Models International Trends Conflicts of Interest Reforming SRO Systems Lessons for the EMC. 2.
Clemente L. del Valle
Lead Capital Markets Specialist
April 30th 2010
Presentation based on a ongoing research being lead by the SMG (and John Carson main consultant) to develop a policy framework for use in advising the World Bank’s clients on employing self-regulation in capital markets.
Towards this objective, the paper
LIMITED EXCHANGE SRO MODEL
STRONG EXCHANGE SRO MODEL
INDEPENDENT SRO MODEL
Trend towards this model
Most prevalent model
Trend away from this model
Only developed in a few countries
Why have Exchange SROs’ roles been cut back?
MOU oversight process
Regular inspections, tending to review all areas, or the same pre-identified areas, each time. Differentiation in scope is often limited for different areas reviewed.
Targeted inspections, focused on higher risk areas. The areas reviewed and scope of review often changes from one inspection cycle to the next.
COMPLAINT / EVENT -
Ad hoc inspections to address specific issues. Used in both models.