Regulation of Nominee Accounts in Emerging Markets

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This report intends to identify effective regulatory mechanisms and tools for the nominee account system, develop recommendations to better regulate nominee accounts and help regulators address relevant investor protection issues pursuant to the IOSCO Objectives and Principles of Securities Regulation,Principle 31 that requires market intermediaries to establish an internal function that delivers compliance with standards for internal organization and operational conduct.Some recommendations for effective regulation of nominee accounts that would help guide securities regulators are: Client Identification, Disclosure Requirements, Shareholder Communication, Maintenance of Securities, Investor’s Rights, and Internal Controls.