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IOSCO - Coggle Diagram
IOSCO
MMoU
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Enables securities regulators to combat cross border fraud, commercial conduct and market misconduct by sharing of information and intelligence
Should consult, cooperate and exchange information for the purpose of enforcement, both regulatory and potentially criminal
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Information requests via the MMoU can be made between members who're in the process of investigating offences involving the following activities under the relevant laws and regulations of the jurisdiction in question
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Misrepresentation of material infroamtion and other fraudulent or manipulative practices relating to securities and derivatives
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The registration, issuance, offer or sale of securities and derivatives in contravention of legilsation
Activités of market intermediaries, including investment and trading activities who are required to be licensed or registered, CIS, brokers, dealers and transfer agents where they do not held the necessary permissions
The operations of markets, exchanges and clearing and settlement entities which are not operating in accordance with the legilation or committing any kind of market offence
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Can also liaise with the member to request/compel them to take a persons statement or testimony under oath regarding he potential offence
Assessment committee
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Organise and strcture a programme to assess implementation of IOSCO Principles and Standards across its membership
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Develops and implements ways in which to benchmark compliance with IOSCO's Objectives and Principles of Securities regualtion and other standards and policies set out in IOSCO reports
The objective is to encourage full, effective and consistent implementation fo Principles and Standards across IOSCO membership which will ensure
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3 main activities
Conduct of Country Reviews - as a starting point the member will have to completed a self-assessment form which requires details of how they have gone about implementing the IOSCO Principles in their jursidction. The AC will then evaluate these responses and review supporting docs. The aims of these reviews to to evaluate any gaps in the implementation of IOSCO's Principles and to devise a road map to address any of the shortfalls
Conduct of Thematic Reviews of a particular IOSCO Principle or IOSCO Standard. The aim of these Reviews will be to analyse how members have approached the implementation of a particular standard or principle and whether some means are more effective or more efficient than others. This can then be published so that members can review whether they wish to make any changes to their regime to be more efficient or effective in line with the findings to the Thematic
Maintenance of the IOSCO Principles and Methodology. This means that AC will use whatever resources and power they have able to reinforce and support the implementation of the Principles and ensure they continue to be upheld by members
Country Review
Benefits
Gives an indecent and objective evaluation of how the jurisdiction has implemented the IOSCO Principles and potentially can reaffirm progress which has ben made against previous assessments
Benefit in having the expertise of these individuals in contact with you, helping guide progress
Jurisdictions will be offered a road map to assist them in putting together a plan to address any gaps in compliance
The report will set out recommendations that the jurisdiction can use to assist in deciding how to go about rectifying any gaps
Once the scope is agreed upon between the review team and the member, the first step is the preparation by the member of a self assessment document which sets out how they have implemented the relevant IOSCO Principles which are the subject of the review
As part of this process, the AC may decide that it should provide technical assistance to help the memeber prepare the response. The AC then appoints a team to review the self-assessment. The review teams will be made up of experts in the relevant area against which the member is being assessed
The review team will then go through the responses provided within the country's self-assessment. The country may need to provide additional information or relevant data, copies of laws, regulations and supervisory guidance in order for it to be considered fully - this is done via a desk used process initially however the review team may then on site if they feel it necessary
The review team, working with a coordination team within the IOSCO Secretariat and the country itself then put together a draft response which sets out each principle against which the country has been assessed and the level of compliance that they have achieved against it. If there are deficiencies then a road map is prepared suggesting how nay gaps might be addressed
The report will be reviewed by the AC, the representatives of the country are invited to parttipcate in the AC meeting to pt forward any comments they may have. Then the final report including road map will be submitted to the IOSCO board for approval and it can then be published
Structure
At the very top is the Presidents Committee which is composed of all Presidents of the orfdinary and associate members
Meetings are held once a year for an Annual Conference - affiliate members are able to attend the Presidents Committee meeting in order to hear about the work of ISOCO and its future plans
ISOCO Board is the part of IOSCO that is charged with setting the standards for IOSCO's regulatory regime, it is currently comprised of 34 securities regualtors
When the IOSCO Board has identified an area which requires work, it delegates to sub-committees which specialise in particular areas, there are 9 committees in total which deal with areas such as enforcement or investment management - these committees undertake the necessary policy work in relation to any proposed developments or changes
There is a separate committee for affiliate members which has 64 members representing securities and derivates markets and other market infrastructures, self-regulatory organisations, investor protection funds and compensation funds
Road maps
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Intended to assist the country in question and are used as guidance for implementation of methods of compliance with the IOSCO principles for that particular jurisdiction
When being used as a follow up for country reviews, the AC road map will out areas for improvements and how those improvements might be achieved
Will only contain comment on principles where the country has not achieved a sufficient progress made rating or where ti has not been assessed as fully implemented
Will highlight improvements that are most material in terms of meeting the relevant IOSCO Principles
Principles for CIS
The regulatory system should set standards for the eligibility, governance, organisation and operational conduct of those who wish to market or operate a CIS
The regulatory system should provide for rules governing the legal form and strcture of CIS and segregation and protection of client assets
Regulation should require the CIS to disclose sufficient information about it in order for an investor to evaluate the suitability of a CIS and the value of the investor's interest in the scheme
Regulation should ensure that there is a requirement for a proper and disclosed methodology for asset valuation and the pricing and the redemption of units in a CIS
Membership
There are ordinary member, associate member and affiliate
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Associate members are other securities and/or futures regulators in a jurisdiction if that jurisdiction has more than one regulator
Affiliates will be bodies such as stock exchanges, self-regulating organisations or stock market industry associations
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Scope of reviews
Thematic review
The AC is responsible for selecting the thematic top, eg a specific principle or it may be a look at the evolution of a new activity in securities and examining how different jursidctions are dealing with regulation of it
Country review
The country is consulted on the scope and terms of reference of the review- may be either all ISOCO principles or a specific principle relevant to the country
Thematic review
Itended to
Provide best practice guidance in implementing certain Principles and Standards to assist other IOSCO members in implementation
Identify areas in which IOSCO Principles and Standards should be considered for revision or where further IOSCO work may be necessary
Provide feedback to members on positive implementation of measures balanced with ways in which some measures implemented have not been as effective
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