IOSCO seeks input on hedge funds
In response to the growing importance of hedge funds, the International Organisation of Securities Commissions (IOSCO) has prepared a consultation paper Principles for the Valuation of Hedge Fund Portfolios.
These proposed Principles, developed in consultation with industry, are designed as a practical tool for fund managers and governing bodies to value hedge fund portfolios. They describe techniques to strengthen the valuation process and thereby achieve appropriate valuations.
The consultation paper is published
at www.iosco.org. IOSCO welcomes submissions on the Principles for the Valuation of Hedge Fund Portfolios by 21 June 2007.
Other IOSCO discussion documents
IOSCO invites interested parties to comment on:
- Review of Implementation of the IOSCO Fundamentals of a Code of Conduct for Credit Rating Agencies, and
- Market Intermediary Management
- of Conflicts that Arise in Securities Offerings.
The closing dates for comments on these documents are 11 and 25 May respectively.
For the first time IOSCO is consulting stakeholders on its Technical Committee’s work programme. This sets out work priorities for the short term. It is also available on IOSCO’s website and the international financial community is invited to comment on this by 8 June.
These documents are all available free of charge on www.iosco.org.
GCC Regulators Summit
Jane Diplock chaired the Inaugural Regulators Summit of the Gulf Co-operation Council in Doha, Qatar, in February, in her role as Chairman of IOSCO’s Executive Committee.
Jane also made a presentation on Regulation and Cross-border Developments. This is available from www.seccom.govt.nz.
Other speakers covered banking supervision, enforcement, wholesale insurance regulation, risk-based supervision, Sharia’h law, training and education. Some 200 finance industry and market participants, government officials, regulators and compliance professionals attended the two-day event. Further information on the Regulators Summit and the planned 2008 summit can be found at www.complinet.com/gccsummit/index.html.
Bilateral MOU with Dubai
The Securities Commission has signed a bilateral MOU with the Dubai Financial Services Authority (DFSA) enabling the two regulators to cooperate and exchange information on enforcement matters.
The DFSA is a part of the Dubai International Financial Centre newly set up as a hub for institutional finance and a gateway for capital investment in the Middle East.
"There is potential for business links between financial firms in New Zealand and the Dubai International Financial Centre," DFSA Chief Executive David Knott said. "These links will become increasingly significant making the New Zealand Securities Commission an important relationship with the DFSA."
"Under Jane Diplock’s leadership the New Zealand Securities Commission is recognised as being at the forefront of IOSCO’s efforts to foster international cooperation between securities regulators," Mr Knott said.
The Commission has a number of other bilateral MOUs with overseas regulators. It is also a signatory to the IOSCO Multilateral MOU. These arrangements aim to strengthen cooperative networks and to help counter cross-border securities fraud.
Commission supports financial studies in schools
The Commission has entered into two new sponsorships with Enterprise New Zealand Trust to provide financial education in New Zealand secondary schools.
The Commission’s objective is to help develop a generation of young people who are knowledgeable about the capital markets and have skills to make good investment decisions.
Enterprise New Zealand Trust has developed a range of financial education
programmes which fit into the whole course of education through a young person’s school years. They aim to raise awareness and provide practical opportunities for students to take part in financial decision-making, and to develop money management capability.
The new sponsorships relate to the Financial Studies Course designed for senior secondary students. The course, which was developed with Securities Commission sponsorship, covers investment, financial planning,
student loans and external infl uences on investment decisions.
One new sponsorship is to promote the course to schools and to train teachers who are delivering it.
The second sponsorship is to develop study guides for the students so they have a permanent record of their learning and an ongoing reference to the concepts, content and examples used in the course.
THE BULLETIN APRIL 2007