SFC Signs on to IOSCO's Cross-Border Regulation Plans

Hong Kong's Securities and Futures Commission (SFC) announced this Friday that it would be adopting the International Organization of Securities Commissions’ (IOSCO) enhanced standard for cross-border enforcement cooperation.

IOSCO members approved the Enhanced Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term of Information (EMMoU) in March of 2017. Aside from having a long-winded name, the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term aims to provide securities regulators across the globe with greater powers to clamp down on financial misconduct.

The regulation was put in place 15 years after similar regulation, the Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (MMoU), was deemed unfit for purpose. IOSCO claimed that the technological and regulatory landscape had changed to such an extent in those 15 years that a new form of cross-border cooperation between regulators was required.

New powers for a new era

Ashley Alder, the SFC’s CEO, commented on the regulator’s decision, saying: "The SFC is pleased to be one of the first signatories to the EMMoU. The EMMoU will foster more effective international cooperation among securities regulators in combating financial misconduct,"

The EMMoU will grant regulators across the globe significant power. Amongst other things, signatories to the agreement will be able to obtain company audits, compel individuals to give testimony, and freeze assets.

Any securities regulator that wishes to become a member of IOSCO must now sign EMMoU. This is understandable given that securities regulators operate in an era when global trade, and cross-border criminal behavior, has never been easier to undertake.