IFSCA in IOSCO
The International Financial Services Centres Authority recently became an associate member of the International Organization of Securities Commissions (IOSCO).
What are the benefits of IOSCO membership?
- The IOSCO works closely with the Financial Stability Board (FSB) and the G20 nations, to set up the standards that strengthen the securities markets.
- According to FSB, IOSCO membership is one of the key standards for sound financial system. This will increase the reputation of the member in the global market.
- IOSCO membership will provide the International Financial Services Centres Authority a platform to interchange information at global level and at regional levels.
What is IOSCO?
- The International Organization of Securities Organizations is an association of national securities regulatory commissions spread all over the world.
- It includes, the Financial Service Authority (UK), Exchange commission & Securities in (US) and 100 other similar bodies.
What are the key roles of IOSCO members?
- To cooperate in developing, implementing, promoting and obeying internationally recognized and consistent standards of regulations and enforcement
- To protect the investors and to maintain fair and efficient markets. This will address systematic risks
- To promote investor confidence in rightness of securities markets through strengthened information exchange and enforcement against misconduct
- Interchange information at both global and regional levels
- To help in strengthening infrastructure of markets
What was the most important agreement signed by IOSCO and IFRS?
IFRS is International Financial Reporting Standards. The IFRS and IOSCO signed an agreement in 2013 on a set of protocols to improve the consistency in the implementation of IFRS. This agreement increased the reputation of IOSCO members further.
What are the new areas supported by the agreement signed between IOSCO and IFRS?
IOSCO on IFRS identifies four new areas for mutual supportive work:
- Use of IFRS’s jurisdictions- IOSCO and IFRS foundation will frequently share information to maintain accurate data
- Security Regulators affected by IASB standards- IFRS foundation will note and explain implementation aspects of IASB’s new amendment standards.
- IFRS enforcement matters- IOSCO will organize annual IFRS discussion sessions to clarify the issues and other enforcement matter with IASB members.
- Timely input of IFRS foundation will help IOSCO members to make opinions.
Category: Economy & Banking Current Affairs