The International Organization of Securities Commissions (IOSCO) has published a consultation report on cross-border regulation.
The consultation report has been produced by the IOSCO Task Force on Cross-Border Regulation which was asked to examine, consider and analyse cross-border regulatory issues and tools. The key mandates of the Task Force are:
- to develop a cross-border regulatory toolkit (Toolkit), containing common terminology, of regulatory options for use by IOSCO members; and
- where appropriate, to lay a foundation for the development of guidance on the coordinated use of the Toolkit to help IOSCO members consider how a particular tool can be used to achieve IOSCO’s three core regulatory goals: protection of investors, ensuring that markets are fair, efficient and transparent, and reduction of systemic risk.
The consultation report describes three cross-border regulatory tools that have been used, or are under consideration, by IOSCO members to help address the challenges they face in protecting investors, maintaining market quality and reducing systemic risk. These tools provide the basis for developing a cross-border regulatory toolkit and common terminology describing potential options for IOSCO members to consult when considering cross-border regulation. They can be broadly classified into three main types: national treatment, recognition and passporting.
The consultation report also discusses the key challenges faced by regulators when implementing cross-border securities regulation, including how their national rules will apply to global financial markets and interact with foreign rules and international standards.
The deadline for comments on the consultation report is 23 February 2015
View IOSCO Consultation Report on Cross-Border Regulation, 25 November 2014