What happened
Published 25 May 2026 by IOSCO (the international standard setter for securities regulation, representing 130+ jurisdictions and 99% of the world's securities markets), this Final Report delivers the culmination of two years of Fintech Task Force work: a practical, non-binding, three-layer supervisory toolkit for overseeing AI systems — from traditional machine learning through generative AI to emerging agentic AI — used by regulated capital market entities. The three layers are: (1) areas of supervisory consideration organised by risk type (AI governance, model risk, investment suitability, market risks including flash crashes and herding); (2) detailed examination tools across four focus areas — governance and risk management, third-party and outsourcing risk management, disclosure, and recordkeeping and reporting — each with specimen examination questions for on-site inspections; and (3) indicators and data sources for ongoing monitoring of AI adoption. The toolkit is accompanied by a standalone extraction document designed as a hands-on reference during live supervisory examinations. IOSCO also flags that AI-enabled cyber capabilities 'may materially accelerate threat evolution and increase the speed, scope, and scale of existing attack techniques' and announces a follow-on review of emerging industry practices with a public survey open until 26 June 2026.
Why it matters
Any firm regulated by an IOSCO member authority — covering virtually every major asset manager, broker-dealer, exchange, and derivatives participant globally — should expect supervisors to begin applying these examination questions; CCOs and CROs need to assess AI governance documentation, AI inventories, and third-party AI outsourcing contracts against the toolkit before the next examination cycle.
Action needed
Have the Chief Compliance Officer map existing AI governance documentation (AI inventory, model validation reports, third-party AI contracts, disclosure policies) against the toolkit's four focus areas and close identified gaps before the follow-on IOSCO industry survey closes on 26 June 2026.