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IOSCO reviewed the progress being made by the Task Force on the subprime crisis launched in
The Technical Committee also discussed various possible advancements in the model IOSCO Code of Conduct Fundamentals for Credit Rating Agencies. IOSCO expects to produce a consultation paper by early March on proposed changes to the model Code of Conduct.
The Technical Committee outlines several key steps that can be taken by market participants to help restore confidence in the operation of the market:
• Financial institutions are encouraged to enhance the information available to the primary market for structured finance instruments;
• Market participants should cooperate to identify information that would be relevant and useful in achieving an appropriate level of transparency in the secondary market;
• Financial institutions should make accurate and complete disclosure of the size and the level of their exposures related to structured finance to the market;
• Institutional investors and asset managers are encouraged to develop and undertake strict due diligence processes in their assessment prior to any investment into complex, structured products.