On 18 April 2005 the International Organisation of Securities Commissions (IOSCO) published a Consultation Paper entitled "Compliance Function at Market Intermediaries". As a result of the recent increased focus on compliance in different jurisdictions, IOSCO has worked to develop possible supplemental principles to principle 23 of its 2003 paper, IOSCO Objectives and Principles of Securities Regulation for market intermediaries.

Presented for consultation are proposals for supplemental principles relating to: establishing the compliance function; the role and responsibilities of the board of directors or senior management; the independence of the compliance function and its ability to act; qualification of compliance personnel; assessment of the effectiveness of the compliance function; supervision by regulators; cross border issues; and outsourcing of the compliance function. Comments on the Consultation Paper are invited by 15 July 2005.