In 2012 the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued the Principles for financial market infrastructures (PFMI). In line with the G20’s expectations, CPMI and IOSCO members have undertaken to incorporate the 24 principles (the Principles) and the five responsibilities (the Responsibilities) included in the PFMI in their legal and regulatory frameworks.
The CPMI and IOSCO are monitoring the implementation of the PFMI, including both the Principles and Responsibilities. The implementation monitoring involves three phases:
- Level 1 to assess whether jurisdictions have completed the process of adopting the legislation, regulations and other policies that will enable them to implement the Principles and Responsibilities;
- Level 2 to assess whether the content of legislation, regulations and policies is complete and consistent with the Principles and the Responsibilities; and
- Level 3 to assess whether there is consistency in the outcomes of the implementation of the Principles and Responsibilities.
The initial Level 1 assessments (covering 27 jurisdictions) were conducted in mid-2013, and the first and second updates (covering 28 jurisdictions) were conducted respectively in 2014 and 2015.
The CPMI and IOSCO have now published a third update to the Level 1 assessments, and reflects the status of jurisdictions’ legal, regulatory or policy frameworks as at 8 January 2016.
Overall, the third update to the Level 1 assessments shows that participating jurisdictions have continued to make progress since the previous update in completing the process of adopting legislation, regulations and/or policies that will enable them to implement the PFMI. Annex A of the report contains a summary of ratings across jurisdictions.