Remarks of Fernando Teixeira
Opening Ceremony for the New IOSCO Headquarters
4 February 2004, Madrid, Spain

Your Royal Highness, First Vice-President and Minister of the Economy of the Spanish Government, IOSCO heads of delegation, distinguished guests. It is my great pleasure to address you today on this occasion of the officially opening of IOSCO’s new headquarters in Madrid. For IOSCO, this is truly a momentous occasion. IOSCO’s move to Madrid marks a new phase in IOSCO’s history and creates new opportunities for the growth and development of the organization in this wonderful facility in this vibrant city. We are truly pleased to be here.

As you are aware, IOSCO, along with the Basel Committee on Banking Supervision and the International Association of Insurance Supervisors, with their headquarters in Basel, Switzerland, is one of the 3 functional standard setters for the financial services industry. It is recognized as the international standard setter for the securities sector. IOSCO’s mission, in this sense, is one of fundamental importance, its objectives being: to protect investors, to ensure fair, efficient and transparent markets, and to reduce systemic risk. In the course of its history, IOSCO has had a number of achievements, the most prominent which are the adoption of its Objectives and Principles of Securities Regulation in 1998 and the adoption of a Multilateral Memorandum of Understanding concerning regulatory cooperation and the exchange of information in 2002. In fact, it is perhaps in the area of regulatory cooperation that IOSCO most significantly excels, as it is a global leader in this area. One should not overlook, however, the total scope and breadth of IOSCO’s work, as it has issued in the course of its history 160 public documents and 47 public resolutions. This body of work, as a whole, reflects the collective thinking of the world’s securities commissions as to the regulatory requirements necessary to the operation of sound securities markets.

However, while IOSCO is extremely proud of its past, its focus today is on its future, as its mission continues. Globalization and technological developments in the financial services industry continue to present challenges to securities regulators and, as markets are constantly evolving, so must the regulation that supports the operation of markets also evolve. Recent revelations of disclosure and auditing deficiencies and abusive marketing practices involving prominent companies, financial services firms, and auditing firms also are currently presenting grave concerns for securities regulators. IOSCO has acted promptly to address these events and has issued a series of statements of principles that IOSCO believes form the basis for an appropriate review and reform of national practices relating to the disclosure of material information by issuers and the auditing of public companies.

As I mentioned, a key to achieving IOSCO’s objectives lies in cooperation among securities regulators, and one of IOSCO’s principle functions is to create a forum where representatives of the securities commissions of the world can come together to discuss issues of common concern, to share experiences in the regulation of markets, to establish the procedures for regulatory cooperation, to agree on international standards, and also to establish the personal relationships with foreign colleagues that so often facilitate communication and the quick resolution of issues in times of market stress or a market event. The availability of this excellent facility contributes very much, in this sense, to the achievement of IOSCO’s objectives, as it provides a very supportive environment in which IOSCO representatives may come together and meet.

Let me take this opportunity, therefore, to formally extend IOSCO’s thanks to the Kingdom of Spain and his Government for inviting IOSCO to move its headquarters to Madrid and for the kind assistance and hospitality we have received since our move here. We look forward to continuing our close relationship with you, particularly with the CNMV, and we hope our presence in your city and country will prove beneficial. Let me also mention the dedication and hard work not only of the current IOSCO General Secretariat, led by Philippe Richard, but also of his predecessors and respective teams, who were very instrumental in the organization of the move to these premises. IOSCO intends, of course, to be an excellent corporate citizen here in Spain. As we intend to host many meetings here at our new headquarters, IOSCO will bring representatives from all over the world to Madrid and I am confident that, after the meetings, they will return to their home countries to spread the good news that Spain is a wonderful place, that the Spanish people are extremely nice and hospitable, that the museums and cultural attractions are of world class, that the food and accommodations are excellent, and that Madrid is an ideal venue for an international meeting. I can assure you that representatives of IOSCO members around the world very much look forward to visiting Madrid and to getting to know more about Spain and Spanish culture. I’m sure this will be a very rich and rewarding experience for all of us and we look forward to it very much.

I would also like to extend our thanks especially to His Royal Highness for making time in his schedule to be with us here today. It is a great honor for us that you are participating in this opening ceremony and we deeply appreciate your interest in IOSCO.

Thank you.