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.
- True
- 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.