The International Organisation of Securities Commissions (IOSCO) has today announced that six further securities regulatory authorities have been invited to become full signatories of the IOSCO Multilateral Memorandum of Understanding concerning Consultation, Cooperation and the Exchange of Information (MMoU).
This follows the acceptance of the current IOSCO members from South Korea and Uruguay as full signatories to Appendix A of the MMoU. These members were listed on Appendix B of the MMoU having previously being assessed as needing to make changes to their legal systems to allow them to comply with the requirements of the MMoU. Recent assessments found that they had both made the necessary changes to address the previously identified gaps in their powers.
Additionally, the securities regulators from Iceland, the Republic of the Maldives, the Kingdom of Saudi Arabia and Syria have been assessed, following rigorous expert reviews, as meeting the cooperation and enforcement requirements needed to become full signatories to Appendix A of the MMoU. Their accession is pending approval of their applications for IOSCO membership on Wednesday 9 June.
Jane Diplock, chairman of the Executive Committee, said: “It is a great privilege to announce that IOSCO has further increased the number of jurisdictions who meet the accepted international standard for securities enforcement cooperation as set out in the IOSCO MMoU. This is further proof of IOSCO’s members’, and their governments, commitment to protecting investors and the integrity of global capital markets from the risks posed by cross-border market misconduct. The expansion of the network of signatories will help to reduce the ability of offenders to evade detection where activities take place across different jurisdictions.”
Kathleen Casey, chairman of IOSCO’s Technical Committee, said: “IOSCO members’ promotion of cooperation and information exchange is a clear example of securities regulators’ commitment to the integrity of the global marketplace and gives further support to the G-20s’ aim of promoting information sharing and international standards with respect to policing and sanctioning market misconduct.”
Guillermo Larrain, chairman of IOSCO’s Emerging Markets Committee, said: “I am particularly pleased to see two members of the Emerging Markets Committee moving to Appendix A having gone through the process of amending their legal framework in order to meet the high standards required by the MMoU. This action by emerging markets regulators demonstrates their commitment to improving investor protection which also increases the attractiveness of their markets to inward investment.”
The number of jurisdictions which have been accepted as signatories to the MMoU now stands at 67, and will increase to with a further 43 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. These full MMoU signatories can now request and share confidential information in the pursuit of cross-border securities offences.