Featured Product

    IOSCO Focuses on Digitalization Risks and Use of Supervisory Colleges

    January 18, 2022

    The Board of the International Organization of Securities Commissions (IOSCO) has set out good practices aimed to foster cooperation and information-sharing among securities regulators through global supervisory colleges. The good practices are based on a review of literature (including that from international regulators, such as the Basel Committee's Principles for Effective Supervisory Colleges) as well as a survey of IOSCO members, with certain banking authorities also responding to the survey and contributing to the identified best practices. IOSCO is also consulting on measures to address risks arising from digitalization of retail marketing and distribution, with the feedback period on the consultation ending on March 17, 2022. The consultation report addresses issues with respect to online marketplaces, customer onboarding, fraud detection, AML/KYC requirements, and third-party outsourcing, among others.

    The consultation report on risks of digitalization of retail market and distribution is aimed to assist the members in adapting their regulatory and enforcement approaches to meet the challenges posed by recent technological developments and the rapidly evolving digitalization and online activities. Domestic and cross-border online offerings of financial services and products provide new opportunities for firms to reach potential clients and for investors to access a wide range of financial services and products more easily. However, developments in digital offerings also give rise to regulatory and investor protection challenges, spanning the whole distribution chain. The consultation report is part of the efforts of IOSCO to build trust and confidence in markets that are facing these new and emerging opportunities and risks. The overarching objective is to enhance the protection of retail investors who are the recipients of online offerings and marketing techniques. The report addresses issues with respect to online marketplaces, customer onboarding, fraud detection, AML/KYC requirements, and third-party outsourcing, among others. It proposes useful guidance on enforcement measures for IOSCO members to consider in effectively addressing fraudulent online activity globally by leveraging innovative powers and proactive technology-based detection and investigatory techniques. The proposed measures could help reduce regulatory and supervisory arbitrage and increase collaboration among IOSCO members and members with criminal authorities, other foreign and domestic authorities, and providers of electronic intermediary services, fostering credible deterrence.

    The report on lessons learned from the use of global supervisory colleges presents 14 good practices that cover matters such as general purpose, membership, governance, multi-lateral confidentiality arrangements and the cross-border operations of supervisory colleges. Based on member feedback, the good practices also encourage the use of supervisory colleges to share information and solutions in times of crises. The good practices are based on the literature review and on the responses from a survey conducted among IOSCO members. Out of the 25 responses to the received to the survey, five responses were from central banks. The respondents were from Australia, Canada (Bank of Canada, regulators from Ontario and Quebec), Brazil, China, European Union, France (including Banque de France), Germany (Bundesbank and BaFin), Hong Kong, Ireland (Central Bank of Ireland), Japan (Financial Services Authority), Korea, Mauritius, Mexico, the Netherlands (De Nederlandsche Bank), Singapore (Monetary Authority of Singapore), Spain, UK (Financial Conduct Authority) and certain agencies from the U.S. The report provides an overview of the international guidelines and practices followed by global supervisory colleges across various sectors of financial services and the reasons for the use of supervisory colleges for cross-border regulation. The report concludes with a discussion on areas of securities markets where the use of global supervisory colleges in the future could be beneficial. 

     

    Related Links

     

    Keywords: International, Banking, Securities, Supervisory Colleges, Regtech, Online Marketplaces, Cross Border Cooperation, Supervisory and Regulatory Cooperation, Fraud Detection, AML, KYC, Outsourcing Service Providers, IOSCO

    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206