_

 consistently applied;

_

 comprehensible;

_

 transparent to the public; and

_

 fair and equitable.

The International Monetary Fund ( IMF ) is developing a broad based  Code on

Good Practices and Transparency in Monetary and Financial Policies  that complements

IOSCO's work.

The securities industry, which today operates on a global basis, supports the IMF

and IOSCO efforts to establish principles of fair and transparent regulation.  The

securities industry strongly believes that by making regulation and the operation of

regulators accessible and transparent and by treating foreign and domestic licensed

market participants fairly and equitably, governments, regulators and international

financial institutions will promote the best markets for investors throughout the world.

Building on the emerging regulatory consensus, this paper provides the views of

the securities industry on fundamental regulatory principles and practices that will

provide a fair and level playing field for market participants.  It also sets the foundation

for building strong and vibrant markets worldwide.  Moreover, we strongly believe that

the principles promoting fair and transparent markets are broadly applicable to all

financial services firms participating in the global capital markets.  In this regard, we are

actively seeking the support of financial services firms worldwide in promoting these

principles.

II.

Guiding Principles of Fair and Transparent Regulation

A.

Rules, regulations and licensing requirements should be imposed, and

regulatory actions should be taken, only for the purpose of achieving

legitimate public policy objectives that are expressly identified, including,

for example, investor protection, maintaining fair, efficient, and

transparent markets, and reducing systemic risk.

B.

Regulation should be enforced in a fair and non discriminatory manner.

1.

Regulations and regulators

22

 should not discriminate among

licensed market participants on the basis of the nationality or

jurisdiction of establishment of the shareholders of a market

22

The term  regulator  is intended to cover all bodies that are authorized pursuant to

law to play a role in the licensing and supervision of the activities of financial services

firms, as well as the bodies that formulate rules, regulations and policies relating to such

firms.  Where the legislature or authorized regulator delegates its authority to a non 

governmental entity such as a self regulatory organization or trade association, the term

is intended to encompass such an entity.

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