The International Organization of Securities Commissions is offering global policy makers the example of MiFID license passporting in the EU as one of three possible tools to adopt for cross border regulation.
The International Organization of Securities Commissions (IOSCO) published a consultation report of the Task Force on Cross-Border Regulation on Tuesday, identifying challenges in the field and describing the possible tools to overcome them.
The report describes three regulatory tools that have been used, or are under consideration, by IOSCO members to help address the challenges they face in protecting investors and reducing systemic risk.
These tools are said to provide the basis for developing a cross-border regulatory toolkit and common terminology describing potential options for IOSCO members to consult when considering cross-border regulations. They can be broadly classified into three main types: National Treatment, Recognition and Passporting.
IOSCO is the international body that brings together the world’s securities regulators. IOSCO develops, implements and promotes adherence to recognized standards for securities regulation, working intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda. IOSCO’s members include over 120 securities regulators overseeing more than 95% of the world’s securities markets.
Tuesday's report also includes a detailed discussion of the key challenges and experiences faced by regulators in implementing cross-border securities regulations, including how their national rules will apply to global financial markets and interact with foreign rules and international standards. In June 2013, IOSCO established the Task Force on Cross-Border Regulation to consider these issues and to assist policy makers and regulators in addressing the challenges they face.
“This is a good start to an ambitious project because of the significant diversity of approaches to cross-border regulation by different countries and markets,” said Ashley Alder, Chief Executive Officer of the Hong Kong Securities and Futures Commission and Chair of the Task Force. “We were pleased to receive encouraging support from industry as well as from fellow regulators and look forward to receiving feedback on the report.”
Global Passporting
National treatment refers to when, regardless of the details of the foreign regulatory regime or how they may compare to the domestic one, entities operating from foreign jurisdictions are treated in the same manner as domestic ones in terms of ongoing regulatory requirements. The state of leveraged foreign exchange trading (Forex) in Hong Kong is one example of this.
Recognition, for the purposes of the report, refers to an arrangement under which a host regulator “recognizes” a foreign regulatory regime, following an assessment of the foreign regulatory regime by the host regulator. This may be unilateral or mutual, depending on whether two-way recognition is required between the jurisdictions.
Passporting of financial products and financial services providers allows the holder of a regulatory license or authorization in one jurisdiction, that is a party to the passporting arrangement, to offer the financial product or provide financial services covered by the authorization or license in any of the other jurisdictions that are parties to the arrangement. No further authorization requirements are needed but the home jurisdiction may only issue an authorization or a license if the financial product meets an agreed set of rules.
In the forex industry, passporting is already a very well-known and widely used concept as most brokers regulated in Cyprus and the UK use the MiFID license passporting ability to offer services across the EU. This maybe a long way off, but if such an agreement is ever adopted by the G20, financial firms will basically be able to operate anywhere with only a single country's license.
The International Organization of Securities Commissions (IOSCO) published a consultation report of the Task Force on Cross-Border Regulation on Tuesday, identifying challenges in the field and describing the possible tools to overcome them.
The report describes three regulatory tools that have been used, or are under consideration, by IOSCO members to help address the challenges they face in protecting investors and reducing systemic risk.
These tools are said to provide the basis for developing a cross-border regulatory toolkit and common terminology describing potential options for IOSCO members to consult when considering cross-border regulations. They can be broadly classified into three main types: National Treatment, Recognition and Passporting.
IOSCO is the international body that brings together the world’s securities regulators. IOSCO develops, implements and promotes adherence to recognized standards for securities regulation, working intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda. IOSCO’s members include over 120 securities regulators overseeing more than 95% of the world’s securities markets.
Tuesday's report also includes a detailed discussion of the key challenges and experiences faced by regulators in implementing cross-border securities regulations, including how their national rules will apply to global financial markets and interact with foreign rules and international standards. In June 2013, IOSCO established the Task Force on Cross-Border Regulation to consider these issues and to assist policy makers and regulators in addressing the challenges they face.
“This is a good start to an ambitious project because of the significant diversity of approaches to cross-border regulation by different countries and markets,” said Ashley Alder, Chief Executive Officer of the Hong Kong Securities and Futures Commission and Chair of the Task Force. “We were pleased to receive encouraging support from industry as well as from fellow regulators and look forward to receiving feedback on the report.”
Global Passporting
National treatment refers to when, regardless of the details of the foreign regulatory regime or how they may compare to the domestic one, entities operating from foreign jurisdictions are treated in the same manner as domestic ones in terms of ongoing regulatory requirements. The state of leveraged foreign exchange trading (Forex) in Hong Kong is one example of this.
Recognition, for the purposes of the report, refers to an arrangement under which a host regulator “recognizes” a foreign regulatory regime, following an assessment of the foreign regulatory regime by the host regulator. This may be unilateral or mutual, depending on whether two-way recognition is required between the jurisdictions.
Passporting of financial products and financial services providers allows the holder of a regulatory license or authorization in one jurisdiction, that is a party to the passporting arrangement, to offer the financial product or provide financial services covered by the authorization or license in any of the other jurisdictions that are parties to the arrangement. No further authorization requirements are needed but the home jurisdiction may only issue an authorization or a license if the financial product meets an agreed set of rules.
In the forex industry, passporting is already a very well-known and widely used concept as most brokers regulated in Cyprus and the UK use the MiFID license passporting ability to offer services across the EU. This maybe a long way off, but if such an agreement is ever adopted by the G20, financial firms will basically be able to operate anywhere with only a single country's license.
The Menace of Clones: Malta’s Regulator Warns against Fake "Documents and Emails"
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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