Conferees Back Worldwide Agency to Police Markets

International regulators called Wednesday for governments to improve worldwide cooperation in detecting and prosecuting fraud in the financial markets.

Delegates to the International Organization of Securities Commissions conference are concerned that recent wrongdoing by the Bank of Credit & Commerce International, major Japanese brokerages and Salomon Bros. could shake investor faith.

“Clearly it is inevitable an international enforcement confederation will be established,” Australian Securities Commission Chairman Anthony Hartnell told a panel discussion on the second day of the three-day meeting. “I believe it will be spawned by cases such as BCCI.”

Barbara Mills, director of Britain’s Serious Fraud Office, proposed creating a global network to assist in multinational or international fraud cases, citing the legal and regulatory difficulties facing authorities who chase offenders beyond their own borders.

“It’s often very difficult to establish which organization you should liaise with in any particular country,” Mills said. “It is essential we have greater cooperation so that when a worldwide fraud is (detected), the countries concerned can work together speedily to investigate the matter, to arrest people and to freeze assets.”

The Securities and Exchange Commission and the Commodity Futures Trading Commission signed an agreement with Britain’s Department of Trade and Industry and the Securities and Investments Board to provide mutual assistance on enforcement issues.