In response to the establishment of the IOSCO Task Force, which was charged with the responsibility of developing a 'tool kit' for cross-border regulatory approaches and considering the need for implementation guidance, an international group of financial service trade associations, investment banks, brokerage houses and market infrastructure operators came together to establish the Cross-Border Regulation Forum (CBRF) for the specific purpose of providing joint industry input into the work of the Task Force.
The CBRF has already engaged in dialogue with the Task Force in terms of setting out its initial views on the need to develop a more comprehensive and coherent form of regulation of cross-border business. It has put forward its views as to how that might be achieved, but it is now working on a more detailed submission to be made to the IOSCO Task Force outlining how some of the challenges identified by it can be addressed.
Further information on the CBRF is set out in a public statement which can be viewed on the website of the International Council of Securities Associations (ICSA).
The FIA Europe point person for the CBRF is Anthony Belchambers, Special Advisor to the FIA Europe Board and Deputy Chairman of the CBRF.
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.
