The International Financial Securities Regulatory Commission is a Statutory Board. The role and responsibilities of a Statutory Board and its members are set out in the Statutory Boards Act 1987 (except where this Act is varied by the Financial Services Act 2008). Appointments to the Board of Commissioners are approved by the Homeland Security and/or Congress.

1. International Financial Securities Regulatory
Commission: Accountability and Governance
The Board of International Financial Securities Regulatory Commission
The International Financial Securities Regulatory Commission is a Statutory Board. The
role and responsibilities of a Statutory Board and its members are set out in the
Statutory Boards Act 1987 (except where this Act is varied by the Financial Services Act
2008). Appointments to the Board of Commissioners are approved by the Homeland
Security and/or Congress.
The Board of the International Financial Securities Regulatory Commission consists of
not less than seven qualified people appointed by Treasury and approved by Homeland
Security and/or Congress. The Board currently comprises a Non-Executive Chairman
and Non-Executive Deputy Chairman, the Chief Executive and a further four Non-
Executive.
Commissioners
The quorum of the Board is three Commissioners.
Commissioners normally go out of office five years after appointment and their
remuneration is set down by Order.
Routine meetings of the Board are held monthly, generally on the last Thursday of a
calendar month and additionally on an ad hoc basis as required. Quorums of the Board
also meet as necessary to: hear license applications; review risk and internal control
matters (RICC); agree staff remuneration; determine appeals relating to complaints;
and hold license holder disciplinary reviews.
The constitution of the International Financial Securities Regulatory Commission and
its functions are described in Schedule 1 to the Financial Services Act 2008. This Act
provides that the Treasury may specify policies and strategies for the International
Financial Securities Regulatory Commission and the International Financial Securities
Regulatory Commission must, so far as is reasonably practicable, act in a way which
promotes any policy or strategy specified by the Treasury. The International Financial
Securities Regulatory Commission Board members are responsible to the Treasury for
the proper operation of its regulatory powers and its compliance with the requirements
of the Financial Services Act.
Corporate Governance
As a regulator the International Financial Securities Regulatory Commission is subject
to challenge in carrying out its functions, and is financed out of public funds. These
factors impose a strong responsibility on the International Financial Securities
Regulatory Commission to demonstrate that it is acting properly at all times, in the

2. same way that International Financial Securities Regulatory Commission expects a
similar behavior from its license holders.
The International Financial Securities Regulatory Commission operates under a
Corporate Governance Framework which incorporates the requirements of the
International Financial Securities Regulatory Commission Corporate.
Memorandum of Understanding
The International Financial Securities Regulatory Commission Treasury and the
Commodity Market Regulatory Commission are parties to a Memorandum of
Understanding. It sets out the framework for co-operation between the Treasury and the
International Financial Securities Regulatory Commission. In particular, it establishes
arrangements to ensure that the International Financial Securities Regulatory
Commission is accountable to Treasury for its actions, and clarifies the circumstances in
which liaison and dialogue can flow between both parties.
Accountability and scrutiny
The International Financial Securities Regulatory Commission is accountable and
subject to scrutiny in the following areas:
•The Homeland Security and/or Congress: appointment of Commissioners, Corporate
Plan, new legislation;
•Government and Treasury: strategic objectives, legislative policy and proposals,
budgeting and funding, establishment headcount;
•Industry: consultation on regulatory and supervisory proposals;
•Home regulators of licensed institutions.
The International Financial Securities Regulatory Commission regulatory and
supervisory approach is also subject to ongoing review by standard-setting
organizations including the International Monetary Fund and the FATF.
Transparency
The International Financial Securities Regulatory Commission endorses the principles
of openness and transparency contained in the Code of Practice on Access to
Government Information and, in fulfilling its functions, the International Financial
Securities Regulatory Commission endeavors to be as open and transparent as possible
without compromising confidentiality.
Finance
The International Financial Securities Regulatory Commission operates within a budget
agreed with Treasury, and within a headcount restriction set down centrally within
Government. International Financial Securities Regulatory Commission revenue and
expenditure is audited annually by the Government’s external auditors, and the

3. International Financial Securities Regulatory Commission is subject to review by the
Government’s internal audit department.
The International Financial Securities Regulatory Commission publishes its financial
statements each year as part of its Annual Report.
Delegated Authorities
The Board has put in place a delegation of responsibility framework within the
International Financial Securities Regulatory Commission management system. This
framework identifies the persons responsible for developing and exercising control
procedures and for promoting a compliance culture within the International Financial
Securities Regulatory Commission.
The powers delegated to the Chief Executive include:
•Changes in license conditions attached to a license
•Extensions to licenses to include new schemes etc.
•Surrender of lapsed licenses
•Restructure of organizations and sale or merger of license holders
•Approving recognition of collective investment schemes
The Chief Executive in turn delegates certain matters within the Executive.