International Financial Securities Regulatory Commission: Assessment Committee

What is AC and what does it do?

The AC has been established to drive IOSCO's key strategic goal of being the recognised standard setter for securities regulation. IOSCO's effectiveness in achieving this goal will be reflected in implementation by members of IOSCO's Objectives and Principles of Securities Regulation ('IOSCO Principles') (which it will ensure remain contemporary); and other standards and policies set out in IOSCO reports or resolutions approved by IOSCO ('IOSCO Standards').

The AC was established in February 2012 by the Executive Committee ('EC') as an initiative of IOSCO's Strategic Direction Review. The Strategic Direction Review had recommended that the AC be established to organise and structure a program to assess implementation of IOSCO Principles and Standards across the IOSCO membership. It also provided guidance on how the assessment program may be structured.

Objectives

The AC is responsible for developing and delivering programs to identify and assess implementation of IOSCO's Objectives and Principles of Securities Regulation ('IOSCO Principles') and other standards and policies set out in IOSCO reports or resolutions approved by IOSCO ('IOSCO Standards') across the IOSCO membership.

The objective of these programs is to encourage full, effective and consistent implementation of Principles and Standards across IOSCO membership which will - in turn - contribute to:

- Investor protection, fair and efficient markets and reducing systemic risk globally;

- Reducing opportunities for regulatory arbitrage;

- Reducing the costs of conducting business across borders; and

- Improving regulatory capability.

Activities

The three main activities of the Assessment Committee are:

1.       The conduct of Country Reviews (for jurisdictions whose regulation of securities is not part of the IMF or World Bank FSAP programs). These Reviews will involve reviewing Self Assessments prepared by IOSCO Members about the implementation of IOSCO Principles. The aim of these Reviews will be to evaluate the status of implementation of IOSCO's Principles and to recommend a road map to address any gaps in implementation;

2.      The conduct of Thematic Reviews of particular IOSCO Principles and IOSCO Standards across IOSCO's membership. The aim of these Reviews will be to provide a snap shot of implementation of IOSCO's Principles and Standards. This snapshot will assist in identifying gaps in implementation, differences in approach to implementation, examples of good practice and difficulties and issues experienced in implementation. If appropriate, Reviews will address identified gaps in implementation; and

3.      Maintenance of the IOSCO Principles and Methodology. This work involves supporting users of the Methodology, updating the Methodology and assessing the need to update the IOSCO Principles.

The AC's core responsibility is the conduct of Country Reviews and Thematic Reviews (collectively known as 'Reviews'). This responsibility is distinct from the administration and provision of technical assistance, which will remain the responsibility of the IOSCO Secretariat. The AC will work closely with the IOSCO Secretariat to ensure technical assistance is provided where appropriate to members to support participation and implementation of Review recommendations.

Benefits of Participation in AC's Programs

The benefits of Country Reviews

Country Reviews offer the following benefits to participating authorities:

- They provide an independent and objective evaluation of the status of implementation of the IOSCO Principles by the authority and the progress they may have made against previous assessments;

- They offer a road map to address any issues of significance which may be material to authorities' needs; and

- Their findings support any calls for legislative/policy and regulatory changes the Review might identify.

Participating authorities also benefit from close liaison with the AC and benefit from the expertise and experience of its members.

More generally, we see the program of Country Reviews as encouraging full, effective and consistent implementation of IOSCO Principles and Standards across IOSCO's membership.

Benefits of Thematic Reviews

The thematic review program is intended to:

- Provide a stimulus to members who have not implemented guidance to take steps to implement them;

- Provide a stimulus to understand the significance of any identified differences in approach and measures which may be developed to work with those differences;

- Identify examples of best (or good) practice in implementing the IOSCO Principles and Standards to assist other IOSCO members in implementation; and

- Identify areas in which IOSCO Principles and Standards may warrant revision or where further IOSCO work would be necessary (through the SCs and TFs).