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The International Organization of Securities Commissions (IOSCO) has today announced that 52 IOSCO members are now full signatories of the IOSCO Multilateral Memorandum of Understanding concerning Consultation, Cooperation and the Exchange of Information (MMOU).
This follows the acceptance of the members from Guernsey, Kenya and Montenegro as full signatories to Appendix A of the MMOU. IOSCO´s assessments found that these jurisdictions are compliant with the cooperation and enforcement requirements provided for under the MMOU.
The members from Argentina, Colombia, Egypt, the Former Yugoslav Republic of Macedonia and Uruguay have been invited to join Appendix B as IOSCO has identified some gaps in their legal systems which need to be addressed before becoming full signatories to Appendix A of the MMOU.
The MMOU provides a mechanism through which securities regulators share with each other essential investigative material, such as beneficial ownership information, and securities and derivatives transaction records, including bank and brokerage records. It sets out specific requirements for the exchange of information, ensuring that no domestic banking secrecy, blocking laws or regulations prevent the provision of information amongst securities regulators, for effective securities enforcement purposes.
Jane Diplock, Chairman of the Executive Committee, said:
“I am delighted to be able to announce that IOSCO now has 52 members whose jurisdictions are fully compliant with the requirements for enforcement cooperation and information exchange as set down in the IOSCO MMOU. This, in addition to the members who are committed to making the changes necessary to become full signatories, represents an impressive achievement for IOSCO since the launch of the initiative in 2002 and an endorsement of its strategy of engagement with under-regulated or uncooperative jurisdictions.
“The success of the MMOU represents a commitment by securities regulators, and their governments, to work together to intensify investor protection and to combat the threat to market integrity posed by the increasing occurrence of cross border market misconduct.
“IOSCO members’ commitment to cooperation and information exchange is also a concrete example of the securities regulators` support for the G-20s’ aim of promoting information sharing and international standards with respect to bank secrecy and transparency.”
The number of IOSCO members which have been accepted as signatories to the MMOU now stands at 52, with a further 21 jurisdictions which have been through the full verification process and are now expected to work to remove the impediments to full Appendix A signatory status.
Appendix A – New Signatories:- Financial Services Commission, Guernsey;
- Capital Markets Authority, Kenya; and
- Securities Commission of Montenegro.
- Comisión Nacional de Valores, Argentina;
- Superintendencia Financiera de Colombia;
- Capital Market Authority of Egypt;
- Securities and Exchange Commission of the Republic of
- Macedonia, Former Yugoslav Republic of Macedonia; and
- Banco Central del Uruguay
- The list of IOSCO members from jurisdictions which are full signatories (Appendix A) and of those who have committed to removing identified impediments to becoming full signatories (Appendix B) is available on IOSCO´s website.
The Cayman Islands Monetary Authority (CIMA) has also been assessed as meeting the requirements as a full signatory to Appendix A. CIMA accession to Appendix A is pending approval of its application for IOSCO membership in the next few months. - The text of the MMOU is available on IOSCO´s website.
