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Bridge over ocean
1 September 2007 Position Paper

Self-Regulation in Today’s Securities Markets

Outdated System or Work in Progress?

CFA Institute

The U.S. Securities and Exchange Commission has questioned the fairness and efficiency of U.S. securities industry self-regulation in light of market developments, new technologies, growing global competition, and additional factors that increase the conflicts inherent in a system of self-regulation. In this paper, the CFA Institute Centre for Financial Market Integrity comments generally on the global convergence of securities markets and regulation and seeks to address whether self-regulation is viable in today's climate. This paper focuses on traits that will strengthen self-regulatory systems by addressing the inherent conflicts and develops a core set of standards generally applicable to most regulatory systems, regardless of jurisdiction or structure. The paper concludes by offering several suggestions for a global oversight framework of securities markets focused on efficiency and investor protection.

Self-Regulation in Today’s Securities Markets: Outdated System or Work in Progress? View the full article (PDF)