On 28 May, the CBRF submitted a written response to an IOSCO questionnaire on a number of issues arising in connection with the regulation of cross-border business and, in particular, regulatory recognition and substituted compliance. The paper:
- emphasised CBRF's support for the work of the international standard setters in developing the post-crisis regulatory objectives and standards;
- emphasised that growing regulatory complexity was distorting business structures and efficiency and enhacing the risk of market fragmentation and regulatory arbitrage;
- put forward a number of proposals in terms of the mechanisms and criteria that could be introduced to better facilitate inter-jurisdictional regulatory recognition and substituted compliance;
- emphasised that, in CBRF's view, IOSCO, working with its member commissions, was the organisation best placed to develop the criteria and provide the mechanisms for achieving regulatory recognition and substitued compliance.