The International Organisation of Securities Commissions has opened the public sessions of its annual conference in Lima focusing on small and medium enterprise financing, investor protection and education, and the opportunities and challenges of new financial technologies.
The public conference comes at the conclusion of IOSCO’s private meetings in which members discussed responses to the challenges facing markets regulators, according to a statement by the body.
During the four-day meeting, the IOSCO Board, the Growth and Emerging Markets Committee, the four regional committees and the Affiliate Members Consultative Committee discussed policy initiatives to strengthen securities market resilience and ensure that securities markets continue to be sustainable sources of finance.
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 the GEM committee members.
On enforcement cooperation, IOSCO’s committee presidents approved the text of an enhanced Multilateral Memorandum of Understanding on cooperation and the exchange of information. This followed detailed discussion at the GEM committee, regional committees and the board.
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:
It was resolved that arrangements for implementation of the MMoU will be developed by the board in consultation with the regional and growth and emerging markets committees with a view to approval by the Presidents Committee by the end of 2016.
On policy work, the IOSCO Board progressed its work on asset management by focusing on liquidity risk management and leverage. Additionally, it considered how to address gaps in asset management data collected by securities regulators, and will publish a statement in this regard shortly.
As part of its effort to improve audit quality, the board approved publication of the survey report on audit committee oversight of auditors.
The board also endorsed the following mandates relating to retail investors: to review industry practices regarding senior investor vulnerability; to apply insights from behavioral economics to investor programmes and initiatives; to design and coordinate a pilot IOSCO world investor week campaign in 2017.
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.
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