The Australian Securities and Investments Commission (ASIC), the Quebec Autorité des marchés financiers (AMF), the Ontario Securities Commission (OSC), the Alberta Securities Commission (ASC) and the British Columbia Securities Commission (BCSC) announced February February 10 a comprehensive arrangement to facilitate their supervision of regulated entities that operate both in Australia and Canada.
ASIC Chairman Greg Medcraft, AMF President and CEO Mario Albert, OSC Chair Howard Wetston, ASC Chair and CEO William Rice, and BCSC Chair and CEO Brenda Leong executed a memorandum of understanding (MOU) that provides a clear mechanism for consultation, cooperation, and exchange of information among ASIC, AMF, OSC, ASC and BCSC in the context of supervision. The MOU sets forth the terms and conditions for the sharing of information about regulated entities, such as broker or dealers, which operate in Australia, Quebec, Ontario, Alberta and British Columbia.
ASIC, AMF, OSC, ASC and BCSC have a long history of cooperation particularly in securities enforcement matters. This MOU extends this cooperation beyond enforcement by setting forth a framework for consultation, cooperation and information-sharing related to the day-to-day supervision and oversight of regulated entities. The supervision of regulated entities is critical to encouraging compliance with securities laws, which in turn helps to protect investors and the securities markets generally.
The MOU was signed in Tokyo on February 10, 2012, after the close of a meeting of the International Organization of Securities Commissions (IOSCO). It is modeled after the principles set out in the IOSCO Task Force on Supervisory Cooperation Report, which was published on 25 May 2010.
In response to the recent financial crisis, the Task Force and many other groups, including the G20, have recommended that regulators enhance the supervision of internationally-active regulated entities by working with their foreign counterparts.
ASIC Chair Greg Medcraft said, “This Supervisory MOU establishes a strong framework for cooperation and collaboration between ASIC and the OSC, AMF, ASC and BCSC. It will enhance the supervision of our financial markets and support our regulatory mandates. Investors and financial consumers can be confident that regulators are working together to see that markets are fair and efficient.”
AMF President and CEO Mario Albert said, “This type of agreement emphasizes the importance of cooperation among regulators from different countries and jurisdictions in order to adequately protect our markets, which are increasingly global in nature, and our investors. It is essential that entities operating across borders be effectively regulated, and this cannot be achieved without the cooperation envisioned by this MOU.”
OSC Chair Howard Wetston said, “Securities regulation is a global responsibility that extends beyond our respective borders. Through cooperation with our regulatory partners, we demonstrate our mutual commitment to protect investors, reduce systemic risk and maintain the effectiveness and integrity of our global capital markets.”