The Technical Committee of the International Organisation of Securities Commissions ("IOSCO"), comprised of representatives of securities regulators of 12 countries(1) held its first meeting in July 1987. At this meeting, six working groups were established to study various aspects of the international securities markets. One group, Working Group Number 3 under the Chairmanship of Mr Jeffrey R Knight of the International Stock Exchange, with representatives from France, Japan, the United Kingdom, and the United States, was set up to study the issues related to capital adequacy for securities firms from a worldwide perspective.
The Working Group surveyed the capital requirements in the 12 countries which are members of the IOSCO Technical Committee. Based upon (1) a detailed consideration of the risks faced by securities firms, (2) information obtained by members of the Working Group, and (3) The deliberations at the meetings of the Working Group, the Working Group reached a number of conclusions about the capital requirements that securities firms should meet.
Those conclusions are contained in this paper which was presented to the Technical Committee at its meeting in Montreal. Canada on June 20&-21, 1989. At that meeting, the Technical Committee adopted this paper and approved it for presentation to the 14th Annual Conference of IOSCO in Venice Italy on September 18-21, 1989.
Footnotes:
1. The 12 countries Australia, Canada, France, West Germany, Hong Kong, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States.
