China inks more MoU deals

China inked more MoU deals at the just-concluded IOSCO Annual Conference in Beijing, expanding its MoU partners to 49.

The China Securities Regulatory Commission (CSRC) signed several bilateral Memorandums of Understanding (MoU) with securities regulators from Cyprus, Luxembourg and other countries at the 37th International Organization of Securities Commissions (IOSCO) Annual Conference in Beijing, which was closed on May 17.

The CSRC has thus inked deals with 49 countries and regions under the MoU frame, with 53 MoUs signed.

The IOSCO MoU is one of the initiatives of the IOSCO taken to raise standards of cross-border cooperation among securities regulators.

For the purpose of facilitating cross-border cooperation among the international community of securities regulators and fighting cross-border violations, the IOSCO adopted the Multilateral MoU (MMoU) in May 2002.

At the IOSCO Annual Conference in Beijing, four more countries — Malaysia, Peru, Egypt and Mauritius — joined the MMoU community, expanding the number of MMoU signatories to 86 countries.

In a press conference during the annual meeting, the IOSCO hailed the MMoU as the “preemptive standard” for international enforcement cooperation and information sharing, as it provides securities regulators with the tools for combating cross-border fraud and misconduct that can weaken global markets and undermine investor confidence.

“The MMoU has created a groundswell change in what securities regulators are able to do,” said Mark Steward, executive director of enforcement at the Hong Kong Securities and Futures Commission.

“Cross-border cases that could not have been investigated 10 years ago can now be investigated and brought before relevant courts and tribunals,” Steward said. “This would not have been conceivable before the MMoU.”

Before the establishment of the MMoU, IOSCO members relied on bilateral agreements to obtain cross-border information and technical assistance. Those accords were limited in scope and hampered by legal impediments to the free flow of information between jurisdictions.

According to the IOSCO, the MMoU provides a mechanism through which securities regulators share essential investigative material, such as beneficial ownership information and transaction records, including bank and brokerage records.

It sets specific requirements for the exchange of information, ensuring that no domestic banking secrecy, blocking laws or regulations prevent the provision of enforcement information among securities regulators, the IOSCO said.

The four nations’ signing of the MMoU brought the total number of MMoU signatories to 86 countries, covering more than 94 percent of the world’s securities markets.

The increase in the number of signatories over the last decade has led to a sharp upsurge in cross-border cooperation, enabling regulators to investigate a growing number of inside traders, fraudsters and other criminal offenders, according to the IOSCO.

The China Securities Regulatory Commission (CSRC), which has been a member of the IOSCO since 1995, has also benefited from signing the MMoU, the IOSCO said.

“The MMoU has made a real difference in the world of international enforcement, raising the standards of enforcement action, encouraging cooperation among international regulators and making it more difficult to conduct market misconduct in an increasingly cross-border environment,” said Georgina Philippou, co-chair of the MMoU Screening Group.

Author: Li Zhenyu
Source: People’s Daily Online