Canada’s four biggest securities regulators have signed a new agreement with Australia’s regulator, the Australian Securities and Investments Commission, to ensure co-operation in the oversight of firms that operate in both countries.
The ASIC Friday announced the signing of a comprehensive arrangement with the Autorité des marchés financiers, the Ontario Securities Commission, the Alberta Securities Commission, and the BC Securities Commission to facilitate the supervision of regulated entities that operate in Canada and Australia.
The heads of the five regulators signed a memorandum of understanding that, they say, “provides a clear mechanism for consultation, co-operation, and exchange of information among the ASIC, AMF, OSC, ASC and BCSC in the context of supervision”. The deal sets forth the terms and conditions for the sharing of information about regulated entities, such as brokers and dealers.
The regulators note that they have a long history of co-operation, particularly in securities enforcement matters, and that this latest MOU extends this co-operation beyond enforcement by setting forth a framework for consultation, co-operation and information-sharing related to the day-to-day supervision and oversight of regulated firms.
The MOU, which was was signed in Tokyo today after a meeting of the International Organization of Securities Commissions, is modeled after the principles set out in an IOSCO task force report on supervisory co-operation.
“This supervisory MOU establishes a strong framework for co-operation and collaboration between ASIC and the OSC, AMF, ASC and BCSC. It will enhance the supervision of our financial markets and support our regulatory mandates. Investors and financial consumers can be confident that regulators are working together to see that markets are fair and efficient,” said ASIC chair, Greg Medcraft.
OSC chair, Howard Wetston, added, “Securities regulation is a global responsibility that extends beyond our respective borders. Through co-operation with our regulatory partners, we demonstrate our mutual commitment to protect investors, reduce systemic risk and maintain the effectiveness and integrity of our global capital markets.”