CFE – Law — Question 17

Which of the following statements about the International Organization of Securities Commissions (IOSCO) is TRUE?

Answer options

• A. IOSCO is recognized as the international standard-setter for securities markets.
• B. IOSCO is an oversight body responsible for issuing and enforcing regulations that govern all international securities markets.
• C. IOSCO provides a forum for regular cooperation on banking supervisory matters affecting developing nations.
• D. IOSCO is a self-regulatory organization for companies that have securities traded on international securities markets.

Correct answer: A

Explanation

The correct answer is A because IOSCO is indeed recognized as the international standard-setter for securities markets, establishing guidelines and best practices. Option B is incorrect as IOSCO does not issue or enforce regulations; it focuses on harmonizing regulations among its members. Option C misrepresents IOSCO's role, which does not specifically focus on banking supervisory matters. Option D is also false as IOSCO is not a self-regulatory organization but rather an association of securities regulators.