IOSCO Board highlights the implementation of IFRS

05 October 2012

The Board of the IOSCO met in Madrid to progress its current work agenda and set a path for future work. The Board was asked by the IFRS Foundation to play a larger role in global efforts to further the international adoption and implementation of IFRS.

The meeting was preceded by a Round Table attended by 18 senior financial services executives drawn from around the world to discuss emerging risks within IOSCO’s remit. The discussions in this meeting with CEOs and CFOs from both developed and emerging markets confirmed the increasing role of securities markets in supporting economic development. Also highlighted was the essential role securities regulators can play in supporting confidence and trust in these markets by addressing emerging risks through the implementation of high-level global standards. The participants emphasised the role IOSCO and securities regulators can play globally in developing consistent, early and forward-looking responses to the challenges financial markets face in a rapidly evolving environment.

In a meeting with the Board, Michel Prada, the Chairman of the Trustees of the IFRS Foundation, urged IOSCO to play a larger role in global efforts to further the international adoption and implementation of international financial reporting standards, as a means to improve the comparability and integrity of financial statements across the globe. This proposal will be taken up by IOSCO’s Committee on Multi-national Disclosure and Accounting. 

Other global regulatory reform work included:

• The development of methodologies to identify Non-Bank SIFI’s. It was agreed that IOSCO’s work in relation to identifying systemically important hedge funds, collective investments and market intermediaries would be coordinated with a view to meeting G20 deadlines set for joint work by FSB and IOSCO later this year;
• Strong support for IOSCO’s involvement in the development of Legal Entity Identifiers. This initiative seeks to uniquely identify participants to financial transactions and meet the demand of the global regulatory community for accurate, consistent and unique entity identification.
• IOSCO’s role in addressing cross-border issues associated with OTC derivatives regulatory reforms in key jurisdictions. The meeting underscored the importance of member jurisdictions cooperating to address these issues in a timely way;
• IOSCO’s role in monitoring implementation of OTC Derivatives Reforms and the recently approved Principles on Financial Market Infrastructure (developed in conjunction wih the CPSS);
• Strong support for IOSCO’s ongoing work on protection of client assets in resolution.

Press release

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