Communiqué of Securities Commissions Conference

News release 9 June 2006

Final Communiqué of the XXXI Annual Conference of the
International Organization of Securities Commissions (IOSCO)

The Securities Commission received the Final Communiqué of the 31st Annual Conference of the International Organization of Securities Commissions (IOSCO) today.

Some key issues from the meetings in Hong Kong were:

IOSCO MoU – 34 members have signed the MoU. New signatories to the MoU are Dubai Financial Services Authority, the Financial Supervisory Authority of Denmark, the Israel Securities Authority and the Securities and Exchange Commission of Nigeria. An additional 9 members have committed to signing.
The meeting put greater emphasis on the IOSCO MoU adopted in May 2002. The MoU is IOSCO’s most significant contribution to regulatory cooperation and effective cross-border enforcement.

Cross-border cooperation in the freezing of assets - IOSCO adopted a resolution encouraging members to examine and review their legal frameworks to freeze assets derived from cross-border securities and derivatives violations. Those who break the securities laws will not be able to benefit from any gains made as a result of their illegal actions.

Boiler Room Activity - IOSCO continues to monitor “boiler room” activity around the world and has recently established an ad hoc group to carry out additional work on this issue. It aims to provide guidance on issues facing regulators in combating boiler room scams.

Compliance Function for Market Intermediaries - IOSCO has outlined the principles that should be considered by all market intermediaries and their regulators in order to increase effectiveness in compliance function of market intermediaries.

International Financial Reporting Standards (IFRS) - A database of information providing useful references for regulators on IFRS decisions will be available to members later during the year.

The SRO Consultative Committee released a Model Code of Ethics which aims to strengthen a culture of ethical behaviour within the financial services industry. This committee represents self regulating organizations and other securities and derivatives markets around the world.

Public panels – One public panel discussed regulations and expectations surrounding the implementation of International Financial Reporting Standards (IFRS). Others discussed increasing risks in hedge funds and transparency in bond markets.

A detailed copy of the communiqué is available from the Commission’s website
www.sec-com.govt.nz

ENDS

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