The International Organization of Securities Commissions has launched a task force on the subprime crisis to review the issues facing securities regulators following the recent events in the global credit markets.

The task force will conduct a preliminary review of the issues raised by these events in order to identify any implications for securities regulators which could be addressed through IOSCO. One of the objectives of the Task Force is to ensure that the implications for securities regulation are reviewed in a systematic manner.

The group will concentrate its work on: risk management and prudential supervision; transparency and due diligence; asset valuation and accounting issues; and, the role of credit rating agencies.

Michel Prada, chairman of IOSCO’s Technical Committee, said, “The group will engage with securities regulators and the financial services industry to examine how they have responded to the recent crisis, the lessons that can be learned and what further work may be needed by IOSCO.”

“The recent events in the credit markets have demonstrated how closely linked the world’s financial centres are and that the issues facing securities regulators can no longer simply be viewed in a national context,” Prada added. “This reinforces the need for regulators to develop and implement international principles of regulation.”

It is anticipated that the Task Force will present its final report to the Technical Committee in May 2008 during IOSCO’s Annual Conference in Paris.

The announcement came at IOSCO’s Technical Committee Conference, which is being hosted by the Japanese Financial Services Agency in Tokyo and involves regulators and market participants from around the world.