New strategic direction - IOSCO*´s new challenge A key feature of IOSCO´s new strategic direction is to upgrade national regulatory standards to a consistent international level. This is a challenging task given the diversity and varying levels of securities market development throughout the world. Helping countries to raise their standards of securities regulation is one objective of IOSCO´s strategic direction. A second is to develop a network of agencies which can exchange information to assist the enforcement of securities law. IOSCO´s approaches to achieving these ideals are to: enable countries to implement the IOSCO Principles of Securities Regulation - thus developing a consistent approach worldwide; and increase the number of signatories to the IOSCO multi-lateral MOU which enables cross-border sharing of information to combat international fraud. Achieving the standards required to implement the Principles and to become a signatory to the MOU can present challenges for jurisdictions. Often law changes are required to strengthen a regulator´s powers to acquire, hold, and exchange information. IOSCO has a range of assistance programmes to help counties meet these challenges including: training programmes run by the General Secretariat; appointment of experts from counterpart agencies in other countries to assist member regulators; assistance through IOSCO´s regional committees. IOSCO helps members obtain funding for reform projects, e.g. the FIRST Initiative gives grants for a range of purposes including implementing international financial standards. *International Organisation of Securities Commissions (IOSCO). Recent releases from IOSCO Visit www.iosco.org to see these media releases: Regulators to share information on international financial reporting standards - 4 October 2005 Consultation report on international disclosure principles for cross-border offerings and listing of debt securities by foreign issuers - 3 October 2005		Exemption for employee share schemes of unlisted companies A class exemption for employee share schemes offered by unlisted companies has been granted by the Commission. The exemption reduces compliance costs for companies wanting to offer shares to their employees. The exemption allows companies to use an "evergreen" prospectus for their scheme, so long as they provide investors with certain information in each annual report. Unless there is an established market for the shares, companies must agree to buy shares back when employees leave the company. Consultation with interested groups showed strong support for such an exemption. Website highly rated The Commission´s website was ranked fourth of 25 Crown entity websites and ninth of 58 government websites when reviewed in April by e-Gov Watch Ltd. The website gained high marks for usability and accessibility. e-Gov provided a detailed report of its assessment which enabled the Commission to improve its website. These improvements include drop down menus, reorganisation and insertion of pages, regrouping of the contents, and shorter pages so users can retrieve information faster. In keeping with the government guidelines, an html version of the pages was made for users who do not use internet explorer, and users can now change the font size. A feedback page has been added. IOSCO talks to business Securities regulators, business and industry representatives, professional associations and academics met in Frankfurt this month to share views on securities markets regulation. Speaking at the meeting, Jane Diplock said that dialogue between all stakeholders in the securities markets is essential to creating appropriate, efficient and fair standards for regulating securities markets worldwide. "The aim is for consistent regulatory standards to increase the integrity of the markets and achieve benefits for both business and investors." This second IOSCO Technical Committee Conference built on the first multi-disciplinary conference held in New York last year. IOSCO is committed to communicating with key stakeholders and global players in the securities markets as part of its strategic direction, adopted earlier this year under Jane Diplock´s chairmanship.

		How to contact us Securities Commission Level 8, Unisys House 56 The Terrace PO Box 1179, Wellington Telephone +64-4-472 9830 Facsimile +64-4-472 8076 Email seccom@seccom.govt.nz Website www.seccom.govt.nz If you would like to receive The Bulletin by email contact catherine.chapman@seccom.govt.nz

	The views expressed in The Bulletin do not necessarily represent the formal views of the Securities Commission, whether on securities or other matters.
		4	THE BULLETIN October 2005

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