May 17, 2012
The International Organization of Securities Commissions (IOSCO), the worldwide association of national securities regulatory commissions, is currently holding its annual conference in Beijing, and has announced a restructure of its governance structure, operations and funding.
A brief summary of the changes:
- Governance. In an effort to streamline the governance structure and decision-making process, a new transitional IOSCO Board has been constituted. The new Board will subsume the functions of IOSCO's Technical Committee (TC), the Executive Committe (EC) and the Emerging Markets Committee Advisory Board. Mr. Masamichi Kono, Vice Commissioner for International Affairs at the Financial Services Agency of Japan (JFSA) and Chairman of the subsumed IOSCO Technical Committee, has been appointed as Chairman of the new Board. Mr Kone will step down from the position in March 2013 and will be replaced by Greg Medcraft, Chairman of the Australian Securities & Investment Commission (ASIC)
- Cooperation. IOSCO approved a resolution that allows it to take tougher measures to encourage compliance by IOSCO members who have not yet signed the Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (MMoU). The MMoU allows member organisations to cooperate with each other in matters of enforcement. The new resolution is designed to assist these non-signatories in overcoming obstacles in securing support from their governments or legislatures for implementing the legal and regulatory changes required for compliance with the MMoU
- Funding. The members discussed the need for alternative sources of funding to expand services to members (especially in emerging markets), including technical assistance, education and training, and research on global global securities market issues. The discussion included the possible creation of an IOSCO Foundation.
- Press release "IOSCO prepares for the regulatory and financial challenges ahead" (link to IOSCO website)
- Press release "The MMoU: Ten years of enhancing cross-border enforcement cooperation" (link to IOSCO website)
- Press release "Masamichi Kono of Japan FSA to lead IOSCO’s new board" (link to IOSCO website).