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The Board of the International Organization of Securities Commissions (IOSCO) met in Toronto this week to reinforce IOSCO’s position as the key global reference point for financial services and markets regulation.
The Board discussion during the two-day meeting focused on three sets of activities in key priority areas as identified in the IOSCO 2020 Strategic Direction: Identifying and responding through guidance to global market risks; providing assistance to IOSCO members and supporting the G20 efforts to promote stability in the global financial system.
The meeting was preceded by a discussion among Board members on recent market developments, including recent market volatility and increased leverage, particularly in growth and emerging markets.
This was followed by a round table discussion with industry representatives on improving SME access to market-based finance.
As part of its ongoing efforts to identify and respond to emerging risks, the Board discussed progress in IOSCO’s work on asset management and agreed to publish a report on liquidity risk management in collective investment schemes. It further decided to conduct work on enhancing collection of data about asset management activity and considered developing guidance on liquidity risk management beyond its 2013 principles (including on stress testing)
The Board discussed its work in other key areas, including the risks posed by CCP’s, market conduct, cyber resilience and audit quality, discussed progressing recommendations in the recently published report on Cross Border Regulationand endorsed work to provide further guidance to financial benchmark administrators and crowd funding. Corporate governance and IOSCO’s possible contribution to international integrated reporting were also discussed.
On assisting IOSCO members in building capacity and co-operating to develop, supervise and enforce laws in their jurisdiction, the Board:
- agreed to proceed with the launch of a Global Certificate Program designed specifically for securities regulators.
- noted progress in the development of an online tool kit and supporting seminar programs to be rolled out by early 2016.
- discussed fostering greater cooperation and exchange of information among regulators for enforcement purposes through the enhancement of the current IOSCO Multilateral Memorandum of Understanding on cooperation and the exchange of information.
- noted the recent launch of the Global Database of Assessments and Country Reviews. The data base is a single easy-to-access reference point for IOSCO members with information on each other’s’ assessment experiences and outcomes.
On advocacy in the FSB, the Board also confirmed IOSCO will continue to actively contribute to the international debate on potential financial stability risks that could emanate from asset management activities and products.
On other issues, the Board heard progress on its review of IOSCO’s Objectives and Principles of Securities Regulation and supporting Methodology. It also heard an update on proposals to undertake alternatives to its current implementation monitoring efforts.
