IOSCO offers remedies for cross-border conflicts
On Sept. 17, the International Organization of Securities Commissions published the ﬁnal report of a task force it set up in 2013 to address the challenges of cross-border regulation. The ﬁnal report indicated that regulators are moving towards more engagement on cross-border issues via different forms of recognition to solve regulatory overlaps, gaps and inconsistencies. While the increased engagement is mostly bilateral at this stage, the report predicted that multilateral engagement is likely to develop further.
The report concluded with recommendations for next steps aimed at supporting cross-border regulation and embedding the consideration of cross-border issues more effectively into IOSCO’s work. For example, there is a need for consideration of how regulatory timing will work among jurisdictions and whether there should be more multilateral cooperation prior to the domestic policy-making stage. Task force members also agreed that IOSCO should engage more with the Group of 20 and the Financial Stability Board in order to raise greater awareness of the issues and challenges faced by IOSCO members on cross-border regulation, including the need for more reﬁned thinking on concepts of “deference.” The report also outlined a toolkit of three broad types of cross-border regulatory options to better equip regulators and policy-makers to develop, implement and evaluate cross-border regulatory approaches.