IOSCO Priorities

Tajinder Singh

Deputy Secretary General, IOSCO

MACAM, 31 May 2019

Who we are

• IOSCO is recognized as the International Standard setter for Securities Regulation

• 130 + jurisdictions, more than 95% of world capital markets;

• IOSCO Principles are one of the 12 key standards and codes recognised by FSB and G20 as key to sound financial systems; used for FSAPs by IMF and World Bank

• The IOSCO Principles are the bedrock of securities markets regulation

• IOSCO MMOU recognized as a benchmark for international cooperation relating to enforcement; upgraded to EMMoU

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Our Objectives are

➢ Investor protection

➢ Fair, efficient and transparent markets

➢ Reduction of systemic risk

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Our membership regulates more than 95% of the world’s securities markets in more than 130 jurisdictions and includes all the major emerging markets

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How we work

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Identification of emerging issues

and risks

Standard setting and Policy

development

Implementation: monitoring and

capacity building

CER/RD Board, PCs & TFs, GEMC, RCs, AMCC

PCs and TFs; jointwith SSBs AC, joint work, PCs

Feedback from implementation experiences and implementation

monitoring outcomes

Cooperation and information sharing across membership

IOSCO Committees

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Presidents’ Cttee

Affiliate Members Consultative Cttee

Growth and Emerging Markets CtteeAPRC

AMERCERC

IARC

Regional Cttees

BoardGrowth and Emerging Markets Cttee

Affiliate Members Consultative Cttee

Regional Cttees

Board

Cttee on Emerging

Risks

Assessment Committee

Assessment Cttee

Policy Cttees

Committee on Issuer accounting, auditing and

disclosures

➢Context: Increasing role of Market Based Financing ➢Five focus areas approved by the IOSCO Board in 2016:

•A. Strengthening the structural resilience of capital markets •B. Addressing data gaps and information sharing issues •C. Applying new insights into investor protection and investor education•D. Analyzing the role of securities markets in capital-raising and sustainability issues, and the related role of securities regulation•E. The role of regulation in financial technology and automation

➢In addition, need to continue capacity building and implementation monitoring

Our Focus Areas

• IOSCO Board decided its workplan for 2019 based on the 2019 Risk Outlook

• Five priorities for 2019:➢ Crypto-assets➢ AI and ML➢ Market Fragmentation➢ Passive Investing and Index Providers➢ Retail Distribution and Digitalization

• Other important work will continue, e.g. ❖ Sustainable finance❖ Cyber❖ Financial Benchmarks

IOSCO workplan is public at https://www.iosco.org/library/pubdocs/pdf/IOSCOPD625.pdf

Our 2019 Priorities

• High quality financial information is key to investors decision making and confidence in markets

• 6 of the 38 IOSCO Principles relate to accounting, auditing and disclosures: • Principle 16: Full, accurate and timely disclosure• Principle 17: Accounting standards of high and internationally

acceptable quality. • Principle 19: Auditors should be subject to adequate levels of oversight. • Principle 20: Auditors independent of the issuing entity that they audit. • Principle 21: Audit standards of high and internationally acceptable

quality. • Principle 23: Other entities that offer investors analytical or evaluative

services should be subject to oversight and regulation

Our work in accounting, auditing and disclosures

• IOSCO instrumental in creation of the IASB

• Chairs the Monitoring Board, responsible for the oversight of

the IFRS Foundation

• Protocols for cooperation with the IFRS Foundation

• Current work includes:• Recognition, measurement and valuation and disclosures of

crypto assets.

• Impact of the benchmarks reforms

• Impact of the sustained increase in goodwill

• Technology and innovation: Immediate versus periodic reporting,

electronic reporting, blockchain applications, cyber risks, etc.

• Extended use of non-GAAP measures

• Statement in January on Disclosures of ESG matters

• GEM will publish sustainable finance recommendations

Accounting and Disclosures

• External audits provide independent assurance: essential

for the effective functioning of markets.

• IOSCO chairs Monitoring Group for advancing the public

interest in international audit standard setting and audit

quality; founder of PIOB; observes IAASB and the IESBA

Consultative Advisory Groups

• Current work includes:• Good Practices for Audit Committees in supporting Audit quality.

• Reforms to Audit standard setting through MG

• Impact of technology: how auditors make use of distributed

ledgers, over-reliance on automatic controls, data analytics tools

for auditors, use of AI

• Monitoring the IAASB projects on quality management and

controls

Auditing

THANK YOU

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