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The IOSCO MOU sets a new international benchmark for cooperation critical to combating violations of securities and derivatives laws. It expresses a commitment by IOSCO members to put in place efficient and effective arrangements for information-sharing to address illegal use of the securities and derivatives markets, including market abuse and fraud.
The IOSCO MOU provides for the exchange of essential information in investigating crossborder securities and derivatives law violations, including bank, brokerage, and client identification records. The MOU also enables regulators to use that information to enforce compliance with securities and derivatives laws and regulations, including through civil and criminal prosecutions.
IOSCO also announced adoption of a new instrument to assist its members in drafting more effective securities regulations. The IOSCO Methodology for Assessing Implementation of the IOSCO Objectives and Principles of Securities Regulation will assist jurisdictions in identifying areas where their securities regulations do not meet the international standards set out in the IOSCO Principles, in categorizing failures in implementation by degree of severity, in identifying areas for priority action, and in developing action plans to seek any necessary reforms.