International Bodies Regulating Offshore Financial Services Sector Flashcards
What is the International Organisation of Securities Commissions ?
- IOSCO roots established as inter-American regional association in 1974 / 1983 annual conference decided to develop into global cooperative body
- membership regulates +95 % of worlds securities markets
- primary forum for securities market regulatory agencies with member being drawn +100 jurisdictions / FCA is member
State the role of the IOSCO
International standard setter for securities markets
Provides comprehensive technical assistance to members / including those regulating emerging markets
State the objectives of the IOSCO
- protect investors
- ensure markets are fair, efficient & transparent
- reduce systemic risks
- 38 principles of securities regulation based on objectives must be implemented practically under relevant legal framework to achieve objectives
State the Principles of the IOSCO
-1998 IOSCO adopted comprehensive set of objectives & principles of securities regulation / now recognised as international benchmark for all securities markets
1) principles relating to regulator
2 principles of self regulation
3 principles for enforcement of securities regulation
4) principles of cooperation in regulation
5) principles for issuers
6) principles for auditor, credit rating agencies & other service providers
7) principles for collective investment schemes
8)principles for market intermediaries
9) principles for secondary markets
- 2003 IOSCO endorsed methodology designed to enable an objective assessment of the level of implementation for principles by members
What is the MMOU
Multilateral Memorandum of understanding Concerning:
Cooperation and exchange of info
Developed in response to 9/11 terrorist attack
Facilitates cross boarder enforcement & exchange of info between international securities regulators / sets how securities will cooperate & exchange info for securities regulated purposes
IOSCO endorsed MMOU as benchmark for international cooperation amongst regulators
Members primary responsibility for securities regulation should be accepted or applied for signatories under MMOU or seek legal authority to become signatories before target date
Offshore regulators JSY, GSY, BVI and Isle of Man MMOU signatories
What is the IAIS & its role
The international association of insurance supervisors
Established in 1994 / voluntary membership
Represents insurance regulators & supervisors in +200 jurisdictions
What are the Objectives and Principles of the IAIS
Objective
- promote effective & globally consistent supervision of insurance industry / develop maintain safe, fair and stable insurance markets for benefit of policyholders
- contribute for global financial stability
Principles
- issue global insurance principles, standards and guidance papers fundamentally for insurance supervisors
- insurance core principles serve as basis benchmark for insurance supervisors in all justifications
What is GIICS
The group of international insurance centre supervisors
Originally offshore group of insurance supervisors founded 1993/ changed name 2012
Group consists of insurance business regulators and supervisors from offshore jurisdictions
Strict criteria must be met by members
State the objectives of the GIICS
- promote mechanisms & forums for insurance supervisors from jurisdictions concerned with offshore insurance business can address areas of mutual interest/ concerns and formulate policies
- provide assistant & encouragement to non members to enable regimes for offshore supervision to equal standards to the groups
- represent interest of the group at international forums
- promote proper supervision of offshore insurance business
State the international bodies that regulate offshore financial services sector
IOSCO and IAIS have impact on regulation of financial services business
GIICS plays useful role for offshore financial services business providers
