INTERNATIONAL: IOSCO Releases Report on the Key Challenges Facing Securities Regulators

Monday May 14 2018

On 10^th May 2018, International Organization of Securities Commissions (IOSCO) released a report which documented the key challenges facing securities regulators.

The report addressed the following:

(1) the sale of unsuitable products to retail investors;

(2) the challenges of Fintech and digitalization,

(3) the shift from active to passively managed collective investment schemes, and

(4) SME access to funding through capital markets

One key issue IOSCO identified was regulators ability to share information. In order to solve this  IOSCO has agreed to establish an information sharing network among IOSCO members to gain insight into the issues around sustainability, including the details of issuer disclosure and its relevance to investor decision making.

The report  also discusses how the European Union General Data Protection Regulation (GDPR)  will affect Regulation.

The Board discussed how the GDPR interacts with information sharing and cross-border cooperation among IOSCO members under the IOSCO Multilateral Memorandum of Understanding (MMoU) on cooperation and exchange of information and it will continue to engage with European authorities to address any issues that are identified as the GDPR is implemented.

The MMoU is the primary instrument used by securities regulators to combat cross-border misconduct in financial markets.  In its report IOSCO noted that 118 out of 146 eligible IOSCO members had signed a MMOU.

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