International watchdog launches private equity probe(2)

A large group of international watchdogs is to examine the impact of private equity on securities markets, as the industry continues to attract attention from regulatory bodies.

The International Organization of Securities Commissions, the world’s largest association of securities regulators, has established a task force to examine the effect of private equity on securities markets.

After its annual meeting in Mumbai, the organisation said in a statement: “The project is considering the risks associated with private equity markets and (will) assess whether the activity of private equity firms poses any concerns for securities regulation.”

The organisation’s membership regulates 90 percent of the world’s securities markets, which includes more than 100 jurisdictions. Its membership continues to grow.

In 1998 the organisation adopted the Objectives and Principles of Securities Regulation, which are now recognised as the international regulatory benchmarks for all securities markets.

The private equity industry has been attracting increasing attention from law-makers worldwide, with some arguing that further regulation is required in response to the massive growth of the sector.