The International Organization of Securities Commissions (IOSCO) is calling attention to the first global information-sharing arrangement among securities regulators at its conference in Seoul, South Korea.

The IOSCO Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information sets a new international benchmark for cooperation critical to combating violations of securities and derivatives laws.

The MOU expresses a commitment by IOSCO members to put in place efficient and effective arrangements for information-sharing to address illegal use of the securities and derivatives markets, including market abuse and fraud.

Applicants to become signatories to the IOSCO MOU must undergo a rigorous screening process. A monitoring group, comprised of all MOU signatories, also has been constituted to monitor compliance.

Although the arrangement was first agreed to last year, IOSCO is highlighting the IOSCO MOU today in recognition of the MOU’s role over the past year in successfully encouraging securities regulators around the world to enhance their abilities to cooperate and share enforcement-related information with their counterparts in other countries.

Although a number of securities authorities have set up their own bilateral agreements to cooperate with each other on cross-border securities fraud investigations, the IOSCO MOU is the first agreement of its kind whereby a group of securities regulators have agreed to share information relating to enforcement investigations, on an equal basis

The IOSCO MOU provides for the exchange of essential information in investigating cross-border securities and derivatives law violations, including bank, brokerage, and client identification records. It also enables regulators to use that information to enforce compliance with securities and derivatives laws and regulations, including through civil and criminal prosecutions.

The list of signatories includes the Alberta Securities Commission, B.C. Securities Commission, Ontario Securities Commission, the Quebec Securities Commission, as well as regulators in the United States, United Kingdom and Europe.

IOSCO also announced adoption of a new instrument to assist its members in drafting more effective securities regulations. The IOSCO Methodology for Assessing Implementation of the IOSCO Objectives and Principles of Securities Regulation will assist jurisdictions in identifying areas where their securities regulations do not meet the international standards set out in the IOSCO Principles.

IOSCO, based in Madrid, Spain, is the primary forum for international cooperation among securities regulators. IOSCO currently has 181 members from more than one hundred jurisdictions.