Stock regulators join cross-border fraud fight

The International Organization of Securities Commissions (IOSCO) has announced that nine further securities regulatory authorities have been invited to become full signatories of the IOSCO Multilateral Memorandum of Understanding concerning Consultation, Cooperation and the Exchange of Information (MMoU). They are Estonia, the Former Yugoslav Republic of Macedonia, the Ministry of Agriculture, Forestry and Fisheries of Japan, the Ministry of Economy, Trade and Industry of Japan, Liechtenstein, Pakistan, Sweden, Chinese Taipei and Tanzania.

Jane Diplock, Chairman of the Executive Committee, said:

“It is my privilege to announce that IOSCO has increased, to two-thirds of its eligible membership, the number of jurisdictions who meet the accepted international standard for securities enforcement cooperation as set out in the IOSCO MMoU. The increase in the number of signatories, all of whom were subject to rigorous expert review, is concrete evidence of IOSCO’s members’ commitment to supporting the G-20s’ aim of promoting information sharing and international standards with respect to policing and sanctioning market misconduct.”

Hans Hoogervorst, Chairman of IOSCO’s Technical Committee, said:

“IOSCO members’ promotion of cooperation and information exchange is a clear example of securities regulators’, and their governments’, commitment to protecting investors and the integrity of global capital markets from the risks posed by cross-border market misconduct.”

Vedat Akgiray, Chairman of IOSCO’s Emerging Markets Committee, said:

“I am particularly pleased to see five members of the Emerging Markets Committee joining Appendix A having gone through the process of amending their legal framework in order to meet the high standards required by the MMoU. This action demonstrates their commitment to improving investor protection which has the added benefit of making their markets more attractive to inward investment.”

The number of jurisdictions which have been accepted as signatories to the MMoU now stands at 79, and will increase to 80 with Liechtenstein’s membership approval, in addition a further 36 jurisdictions have been through the full verification process and are now expected to work to remove the impediments to full Appendix A signatory status. These full MMoU signatories can now request and share confidential information in the pursuit of cross-border securities offences.

Multilateral Memorandum of Understanding
The MMOU provides a mechanism through which securities regulators share with each other essential investigative material, such as beneficial ownership information, and securities and derivatives transaction records, including bank and brokerage records. It sets out specific requirements for the exchange of information, ensuring that no domestic banking secrecy, blocking laws or regulations prevent the provision of securities enforcement information amongst securities regulators.

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