world_organizations hard True/False

IOSCO's principles for market intermediaries require firms to maintain adequate capital, robust risk management systems, and clear client asset segregation to protect investors and ensure the stability of financial markets.

  1. True
  2. False

Answer: True

These principles address key risks: undercapitalization can lead to insolvency; weak risk controls amplify losses; commingling client assets creates misappropriation risks. By setting global baselines, IOSCO promotes sound intermediary practices that safeguard investors and contribute to overall financial system integrity.

Topic International Organization of Securities Commissions
Exam Relevance Banking, UPSC, SSC
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