Japanese regulators have signed onto the International Organization of Securities Commissions’ agreement allowing it to share information with other regulators.

The Financial Services Agency of Japan has obtained the approval of IOSCO to become a signatory of the Multilateral Memorandum of Understanding concerning Consultation and Cooperation and the Exchange of Information, which is an information-sharing mechanism among securities regulators around the world.

Currently, 44 regulators, including the regulators in major markets, are the signatories to the MMOU. By becoming a signatory, the FSA will be able to exchange information with securities regulators around the globe for market supervision and enforcement.

“As securities transactions are becoming increasingly cross-border, market misconduct also occurs in a cross-border context,” the FSA notes. “With this situation in mind, it is vital for securities regulators to co-operate and share information smoothly and mutually, in order to carry out the markets in effective manner.”

It adds that “strengthening cooperation with overseas authorities” and “broaden[ing] bilateral and multilateral networks for information exchange with overseas supervisory authorities” are contained in the “Plan for Strengthening the Competitiveness of Japan’s Financial and Capital Markets” released on Dec. 21, 2007.