On 25 May 2026, the International Organisation of Securities Commissions (IOSCO) issued a final report, Supervisory Toolkit for AI use in Capital Markets.
The final report is intended to support IOSCO member authorities in their oversight of the use of artificial intelligence (AI) systems by entities subject to their regulation and supervision through a toolkit that provides supervisors with practical, non-binding, non-prescriptive supervisory tools, applicable across regulatory models. The toolkit aims to cover the full lifecycle of an AI system and applies to all AI system types, from those based on more traditional forms of machine learning to those using GenAI and emerging Agentic AI techniques.
The final report covers three layers:
- Areas of supervisory consideration: The first layer outlines areas of supervisory consideration relating to the use of AI systems in capital markets, building on the work conducted for previous IOSCO reports on AI. It provides supervisors with a framework for understanding which areas may warrant closer attention and where supervisory resources might be most effectively deployed.
- Tools for supervisory oversight of key areas: This layer provides supervisors with more detailed tools to support evaluation across four areas of focus: (i) Governance and Risk Management; (ii) Third-party and Outsourcing Risk Management; (iii) Disclosure; and (iv) Recordkeeping and Reporting. It also includes practical examples of questions that supervisory authorities may find helpful for their dialogues with supervised firms and when planning examinations of supervised firms’ AI use.
- Indicators and data sources: The final layer equips supervisors with suggested indicators for monitoring AI adoption and use, alongside a range of engagement methods to gather relevant information. These include on-site inspections, targeted surveys, regular supervisory dialogue, requests for documentation and data, and other mechanisms that can support supervisory assessments of firms’ AI systems.