Report from THE SECRETARY GENERAL Philippe Richard Secretary General

During 2004, the permanent premises of the Secretariat were officially opened in Madrid by His Royal , Felipe de Borbón, of Asturias. The impressive official ceremony, which took place in February, was attended by several officials of the Spanish Government, including Rodrigo de Rato, as well as representatives of numerous IOSCO members.

During 2004, the permanent premises of the The Annual Conference, which took place Secretariat were officially opened in Madrid by in Amman Jordan in May 2004, was an His , Don Felipe de Borbón, outstanding success with more than 500 . The impressive official delegates in attendance from all over the 16 ceremony, which took place in February, was world as well as many participants from the attended by several officials of the Spanish global financial services industry. Government, including Rodrigo de Rato, as well as representatives of numerous IOSCO The Amman Annual Conference was particu- members. larly noteworthy for the focus it brought to bear on issues relating to the strengthening of The official opening of the General Secretariat securities markets against financial fraud. This premises marked the culmination in a process followed the formation earlier in the year of a which commenced some years ago in May special Technical Committee task force to 1999 when the IOSCO Presidents Committee carry out an in-depth examination of this issue resolved to accept a proposal from the Spanish which reflected part of IOSCO’s response to a Authorities to locate permanent premises of number of high profile corporate collapses. the Organization in Madrid. The new premises contain excellent meeting facilities and have The Annual Conference also focused on a range enabled the General Secretariat to undertake of topical issues in the public panel discussions an expanded role in hosting an increasing including the regulation of collective invest- number of committee meetings. ment schemes; public oversight of accounting and auditing standards; securities market During the first half of the year, the General price formation mechanisms and mergers, Secretariat was actively involved in the demutualization and governance of securities preparation of several important meetings exchanges. including the Executive Committee, Technical Committee and EMC Advisory Board which all met in Madrid in February 2004 in conjunction with the official opening of the premises.

Report from the Secretary General IOSCO Annual Report 2004 During the second half of the year the General During 2004 the General Secretariat Secretariat was again involved in the continued to give a high priority to the preparations of the Executive Committee, implementation of the IOSCO Objectives and Technical Committee and the EMC Advisory Principles of Securities Regulation. These Board meetings, which took place in Montreal regulatory principles are a focal point for in October 2004. IOSCO. The General Secretariat has been assisting members to assess the level of imple- This was followed by the inaugural Technical mentation of the Principles in their respective Committee Conference, which was held in jurisdictions. This was done particularly via New York from 27 to 29 October 2004. This the Pilot IOSCO Principles Assessment and Conference, which was the first of its kind, Implementation Program (Pilot Program), enabled more than 200 participants from the which was launched in early 2004 to assist global financial services market and securities Emerging Markets Committee members in sector to come together and engage in an achieving full implementation of the Principles. extensive, in-depth dialogue regarding critical matters facing the securities sector. During 2004, the members from Turkey, El 17 Salvador and Thailand participated in the Pilot The TC Conference was organized around a Program and already the benefits of their series of high profile discussions including the participation are being demonstrated. In the changing role of stock exchanges; the rights years ahead it is anticipated that many of shareholders; cross border enforcement more jurisdictions will also gain from their practices; and the impact of evolving tech- participation in an expanded version of this nology on the work regulators. The lessons program. I would like to particularly thank the learnt from this inaugural TC Conference have various technical experts whose participation been instrumental for the preparations that and assistance in the Pilot Program has proven would be necessary in the hosting of future invaluable. such events. Towards the end of the year, the General Secretariat was again actively involved in hosting the Seminar Training Program (STP) which is increasingly becoming an important and integral part of the annual agenda for IOSCO. This year the focus was on the concrete sharing of the valuable experience gathered by those members who have been part of the Pilot Program through case study presentations and analysis.

The 2004 STP also included presentations from the World Bank and the Toronto Centre

IOSCO Annual Report 2004 Report from the Secretary General whose programs are aimed at improving Cooperation is also continuing within the financial system structures and processes. Financial Stability Forum, with the Financial Overall, the STP proved to be extremely Action Task Force (FATF) and with other worthwhile with more than 50 delegates from international financial institutions such as 30 agencies. Such a high level of active the World Bank and the IMF. It has been participation continues to demonstrate the particularly pleasing this year to see how these ongoing importance of the training program financial institutions regularly use the IOSCO to members. Principles within the framework of their Financial Assessment Sector Program (FSAP). The General Secretariat also continues to be directly involved in the implementation of the An additional three new members joined the IOSCO MOU. It is evident that the IOSCO organization during the year: the Jakarta Stock MOU represents a key instrument to facilitate Exchange of Indonesia, the Karachi Stock and expand cross-border enforcement related Exchange of Pakistan and the Taiwan Futures cooperation and exchange of information Exchange of Chinese Taipei. This brought the among securities regulators. In particular, the total membership of IOSCO to 174 members. General Secretariat has supported the screening The comprehensive extent of IOSCO’s mem- procedures, which involve a review of the bership clearly demonstrates that it truly applications as a preliminary step before a represents the international community of member becomes a signatory to the MOU. The securities regulators and that it is the General Secretariat also liaises with the international standard setter for securities relevant committees and ensures the smooth markets. and fair functioning of the process. Throughout the year, the General Secretariat 18 Since the endorsement of the IOSCO MOU by played a more active part in the numerous the Presidents Committee in May 2002, the Standing Committee and Working Group General Secretariat has received more than meetings that took place as well as in training 50 applications from IOSCO members. By the and technical support to members. External close of 2004, a total of 26 members had communications were strengthened with become signatories and another four had the appointment of a Public Affairs Officer signed up to Annex B. Already it is evident that which has resulted in an increasing level of the IOSCO MOU is proving to be an invaluable awareness of IOSCO activities and a raising of source of assistance to members conducting the Organization’s international profile. international enforcement related investiga- tions. Finally, I would like to thank all the staff of the General Secretariat for their extraordinary IOSCO continues to place a high priority on efforts throughout what proved to be a the strengthening of cooperative links with remarkably challenging year. Although it is other international financial regulators. In a small team, the commitment, dedication particular, considerable efforts have been and professionalism of the General Secretariat directed into our active participation within staff has tremendously helped the the Joint Forum, whose parent bodies are Organization and its members in achieving IOSCO, the Basel Committee on Banking critical objectives for the benefit of the Supervision, and the International Association international financial community. of Insurance Supervisors (IAIS). Philippe Richard Secretary General

Report from the Secretary General IOSCO Annual Report 2004