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Generate QuizWhich IOSCO principle emphasizes that securities regulators should have the authority to conduct on-site inspections of regulated entities to verify compliance with laws and detect misconduct?
- Principle of Transparency
- Principle of Supervisory Powers
- Principle of Market Efficiency
- Principle of Investor Education
Answer: Principle of Supervisory Powers
Effective supervision requires proactive oversight: reviewing records, interviewing staff, and testing controls. On-site inspections complement off-site monitoring, enabling early detection of fraud, risk management failures, or governance weaknesses, thereby protecting investors and maintaining market integrity.