The International Organization of Securities Commissions (IOSCO) has recently published a number of reports outlining key challenges and opportunities for global market regulators.
ASIC has played a significant role in developing the consultation reports in its role as chair of the Committee on Regulation of Market Intermediaries (Committee 3).
As a permanent board member of IOSCO, ASIC is committed to ensuring the policy approaches and collective thinking of markets regulators globally is shared with industry for consultation and feedback.
Consultation reports to note relating to IOSCO’S investor protection objective include:
- Consultation report on Pre-Hedging (PDF) – Assessing the potential conduct and market integrity issues associated with pre-hedging, this report proposes a definition of pre-hedging and offers recommendations to regulators in determining acceptable pre-hedging practices and managing the associated conduct risks effectively. This report comes after ASIC’s guidance for market intermediaries on pre-hedging issued on 1 February 2024. Following conclusion of IOSCO’s work and publication of a final report, we will consider how to apply the recommendations in Australia. We may supplement ASIC’s guidance at that time.
- Consultation reports to enhance retail investor online safety (PDF) – IOSCO has released three consultation reports as part of an initiative to safeguard retail investors from emerging global risks and address online fraud, promote safe investing and enhance global cooperation. The consultation reports relate to Finfluencers (PDF), Copy-Trading (PDF) and Digital Engagement Practices (PDF).
These reports set out good practices for regulators, market participants, and finfluencers to foster a safer, more transparent environment for retail investors. IOSCO’s work in this space is aligned with ASIC’s focus on driving better outcomes for consumers of financial products and services.
Background
IOSCO is the leading international policy forum for securities regulators and the global standard setter for financial markets regulation. It develops, implements and promotes adherence to internationally recognised standards for financial markets regulation and works closely with other international organisations on the global regulatory reform agenda.
IOSCO’s membership regulates more than 95% of the world’s securities markets in some 130 jurisdictions. By providing high quality technical assistance, education and training, IOSCO supports its members to come together to achieve the following three objectives:
- Enhance investor protection
- Ensure markets are fair and efficient, and
- Promote financial stability by reducing systemic risk.
International regulatory cooperation across markets and financial services is facilitated by IOSCO’s Multilateral Memorandum of Understanding (MMoU (PDF)) and Enhanced Multilateral Memorandum of Understanding (EMMoU (PDF)).
ASIC also signed a new Supervisory Multilateral Memorandum of Understanding (SMMoU) on 17 October 2022. The Supervisory MMoU is between member authorities of IOSCO’s Asia-Pacific Regional Committee (APRC). ASIC co-led the development of the MMoU with IOSCO and consulted closely with APRC members on the agreement.
Links to IOSCO reports
- CR/11/2024 Pre-hedging, Report of the Board of IOSCO
Comments on the report should be submitted by 21 February 2025
21 Nov 2024 – View Report (PDF)
- CR/09/2024 Digital Engagement Practices (DEPs), Report of the Board of IOSCO
Comments on the report should be submitted by 20 January 2025
19 Nov 2024 – View Report (PDF) | Related Public Reports (24)
- CR/10/2024 Online Imitative Trading Practices: Copy Trading, Mirror Trading, Social Trading, Report of the Board of IOSCO
Comments on the report should be submitted by 20 January 2025
19 Nov 2024 – View Report (PDF) | Related Public Reports (24)
- CR/08/2024 Finfluencers, Report of the Board of IOSCO
Comments on the report should be submitted by 20 January 2025
19 Nov 2024 – View Report (PDF) | Related Public Reports (24)
- FR/08/2024 Voluntary Carbon Markets, Report of the Board of IOSCO
14 Nov 2024 – View Report (PDF) | IOSCO/World Bank Joint Note | Related Public Reports (2)
- FR/07/2024 IOSCO Report on Transition Plans, Report of the Board of IOSCO
13 Nov 2024 – View Report (PDF)
- IOSCO Statement on the IAASB’s International Standard on Sustainability Assurance (ISSA) 5000, Report of the Board of IOSCO
12 Nov 2024 – View Report (PDF)
- CR/07/2024 Guidance for Open-ended Funds for Effective Implementation of the Recommendations for Liquidity Risk Management, Report of the Board of IOSCO
Comments on the report should be submitted by 11 February 2025
11 Nov 2024 – View Report (PDF)
- CR/06/2024 Revised Recommendations for Liquidity Risk Management for Collective Investment Schemes, Report of the Board of IOSCO
Comments on the report should be submitted by 11 February 2025
11 Nov 2024 – View Report (PDF)
ASIC is Australia’s corporate, markets and financial services regulator.
