IOSCO and the Art of Supervisory Cooperation
On 15-19 September Luxembourg hosts a gathering of financial regulators from over 110 countries with the power to set standards on 95% of the world’s securities markets. The Annual Meeting of IOSCO, the Madrid based International Organisation of Securities Commissions, is further proof - if proof were needed - that where the financial sector is concerned, the world is already a village.
LFF interviewed the Director of Luxembourg's supervisor CSSF, Jean Guill, on the influence of IOSCO and the role of a national regulatory authority in cross-border business.
- LFF: What is the role of the IOSCO Annual Meeting?
- JG: The IOSCO Annual Meeting is the AGM and the place where decisions are adopted. Most of the standard settingwork is done in different working groups and regional committees during the year. The IOSCO Board adopts decisions and these are then formally adopted by the Presidents’ Committee, once a year at the Annual Meeting. Sometimes there is further discussion in the Presidents Committee and members can be asked to vote. One fixed feature of the Annual Meeting is an assessment of cooperation over the previous 12 months. Each jurisdiction reports on how many requests for information it sent out, how many it received and how many were handled within the target timeframe.
- LFF: If bi-lateral cooperation is needed in a specific area, such as cross-border marketing outside of the European Union, what is the procedure?
- JG: Decisions concerning cross-border marketing outside of the European Union are taken by the respective local authorities. This is something for the politicians and industry associations to negotiate. The CSSF is open to sign an MoU with the authority of a third country if this is deemed helpful and if the authority wishes to do so. If needed, the CSSF can confirm that an entity wishing to do business in a third country is properly authorised and supervised.
- LFF: What is the role of Luxembourg at this years' Annual Meeting?
- JG: Luxembourg has been a member of IOSCO since 1991 and was nominated three years ago to host the 2013 Meeting. Part of the event is open to the public and we have some influence on the topics to be discussed in that part of the programme. Mostly, however, it is a chance to show Luxembourg to Regulators who have never been here, to correct misconceptions about the size and substance of our financial sector and to offer Luxembourg professionals the opportunity to meet and mingle with Supervisors from around the globe.
- LFF: What is the long term significance for Luxembourg?
- JG: I think the fact that IOSCO agreed to hold the meeting in such a small country is significant, both for other small nations and because it implies recognition of Luxembourg as an international financial centre. ER