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08 February 2013

IOSCO publishes recommendations regarding the protection of client assets


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IOSCO published a consultation report on Recommendations Regarding the Protection of Client Assets, which seeks to help regulators improve the supervision of intermediaries holding client assets. Comments on the consultation paper are sought by 25 March, 2013.


The eight principles  provide guidance to regulators on how to enhance their supervision  of intermediaries holding client  assets by clarifying the roles of the intermediary and the regulator in  protecting those assets.

Many jurisdictions have rules and regulations governing client assets, although their protection regimes  may vary across these jurisdictions. The report outlines the intermediary’s responsibility to ensure  compliance with these rules, including through the development of internal systems and controls to  monitor compliance.  Where the intermediary places client assets with  third parties, the intermediary  should reconcile the client's accounts and records with those of the third party.  While the intermediary  must comply with the client asset protection regimes, the regulator has a role in supervising the intermediary’s compliance with the applicable domestic rules and maintaining a regime that promotes  effective safeguarding of client assets, according to the report.

Comments on the consultation paper are sought by 25 March, 2013.

Press release

Full consultation



© IOSCO


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