ASC adopts crowdfunding rule

The International Organization of Securities Commissions (IOSCO) intends to develop guidance on crowdfunding, and to continue examining the financial stability risks posed by the asset management industry.

Following meetings in Toronto this week, the IOSCO board issued a statement indicating that it discussed IOSCO’s work on asset management and agreed to publish a report on liquidity risk management in collective investment schemes, such as mutual funds.

The IOSCO board also decided to undertake work on enhancing data collection in the asset management sector, and is considering additional guidance on liquidity risk management (including guidance on stress testing).

IOSCO will “continue to actively contribute to the international debate on potential financial stability risks that could emanate from asset management activities and products,” the board confirmed in a statement published on Wednesday.

The board also endorsed plans to provide further guidance on crowdfunding, and to the administrators of financial benchmarks. Corporate governance and IOSCO’s possible contribution to integrated international reporting were also discussed, as was the organization’s work in other key areas, including the risks posed by central counterparties (CCPs), market conduct, cyber resilience and audit quality.

In a move designed to help regulators build their capabilities, IOSCO also agreed to launch a global certificate program designed specifically for securities regulators; and, it discussed the potential for enhancing IOSCO’s Multilateral Memorandum of Understanding on co-operation and information exchange.