On 29 May 2008, the task force established in November 2007 by the International Organisation of Securities Commissions (IOSCO) to study the subprime market turmoil and its effects on the public capital markets (Task Force) published its final report (Report). IOSCO had identified key areas on which the Task Force should focus its analysis (see Legal update, IOSCO launches task force on the sub-prime crisis).

The Report makes recommendations for future work by IOSCO's Technical Committee to counter issues arising in the following three areas:

- Issuer transparency and investor due diligence.

- Firms' risk management and prudential supervision.

- Valuation and accounting issues.

The Report also includes a summary of the recommendations of the IOSCO task force on credit rating agencies (CRAs). Its report on the role and duties of CRAs in structured finance markets was published on 28 May 2008, together with a revised code of conduct for CRAs (see Legal update, IOSCO publishes amended code of conduct for credit rating agencies).

Commenting on the Report's publication, Christopher Cox, SEC Chairman and co-chair of the Task Force, said: "This report makes clear that [...] new financial products need to be accompanied by a thorough analysis of the risks as well as the benefits they bring. This report also highlights the need for all market participants, institutional investors and financial regulators to focus on adequate risk assessment and risk management."

A briefing note summarising the Task Force's recommendations was published alongside the Report.