The International Organization of Securities Commissions (IOSCO) reports that it now has 100 signatories to its mechanism that facilitates co-operation and information sharing between securities regulators, in order to combat cross-border financial misconduct.
IOSCO reports that the Indonesian Financial Services Authority signed onto its multilateral memorandum of understanding (MMoU) on co-operation and the exchange of information this week. Reaching 100 signatories to the MMoU, out of a total of 125 eligible IOSCO members, marks a watershed for the organization, it says.
Securities regulators use the MMoU to fight cross-border misconduct by allowing regulators to share essential investigative material, such as beneficial ownership information, securities and derivatives trading records, and bank and brokerage records. It sets out specific requirements for the exchange of information to ensure that other laws and regulations don’t prevent the exchange of enforcement information between regulators.
“The MMoU is the foundation on which IOSCO’s proud record of regulatory co-operation is based,” said Greg Medcraft, chair of the IOSCO board. “It is a vital instrument supporting our global objectives of confident and informed investors, fair, efficient and transparent markets and reducing systemic risk. The fact we now have 100 signatories is, therefore, a significant milestone for IOSCO.”
In recent years IOSCO has stepped up efforts to get all of its members to sign onto the MMoU. Last year, for example, it adopted measures that will gradually restrict the opportunities for members that haven’t signed to participate in key IOSCO decisions. It notes that 20 of the 25 IOSCO non-signatories have formally expressed their commitment to seek the legislative and administrative changes necessary for achieving MMoU compliance.