12 May 2016

IOSCO continues to address global challenges to securities markets

Members discussed how best to make use of the expertise and knowledge of IOSCO’s diverse membership, including measures to further the integration and enhance the participation of GEM Committee members.

On enforcement cooperation, IOSCO’s Presidents Committee approved the text of an Enhanced Multilateral Memorandum of Understanding (Enhanced MMoU) on cooperation and the exchange of information.

 The Enhanced MMoU, which is aspirational in nature, provides for the additional powers that IOSCO believes are necessary for its member regulators to ensure their continued effectiveness in deterring cross-border misconduct and fraud in securities markets. It builds on the success of the current MMoU on cooperation and exchange of information, while taking into account technological and regulatory developments since the launch of the original MMoU in 2002.

The Enhanced MMoU sets out five new powers in addition to those in the current MMoU:

1) to obtain and share audit papers;

2) to compel attendance for testimony by being able to apply a sanction in the event of non- compliance;

3) to advise and provide existing information to another regulator on how to freeze assets, or to freeze assets on behalf of another regulator;

4) to obtain existing Internet service provider records, not including the content of communications; and

5) to obtain existing telephone records, not including the content of communications.

On policy work, the IOSCO Board progressed its work on asset management by focusing on liquidity risk management and leverage.

On the issue of infrastructure finance, the Board agreed to establish a working group comprised of Board members from both advanced and growth and emerging markets that will engage with development banks, institutional investors and other stakeholders to discuss issues relevant to market-based finance for infrastructure development.

Full press release

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