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Friday 22 June 2018

18-182MR ASIC enhances its enforcement toolkit beyond Australia’s borders

ASIC has become one of the first signatories to the IOSCO Enhanced Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (EMMoU), an enhanced standard for cross-border enforcement cooperation.

By signing the EMMoU, ASIC has highlighted its power to assist foreign regulators by compelling physical attendance for testimony, obtaining and sharing audit work papers, communications and other information relating to the audit and review of financial statements, and provide guidance on freezing of assets. The EMMoU also provides the framework for ASIC to request reciprocal assistance of this nature from fellow EMMoU signatories.

‘ASIC is pleased to be amongst the first to sign the EMMoU, which expands the range of enforcement powers that signatories may use to safeguard the integrity and stability of markets, protect investors, and deter misconduct and fraud.  It strengthens ASIC’s enforcement tools, and supports our efforts to investigate and combat cross-border fraud and misconduct’, said ASIC Chair James Shipton.

The IOSCO EMMoU builds upon the IOSCO Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (MMoU), the global benchmark for international cooperation in the enforcement of securities and derivatives laws and regulations which ASIC has been a signatory to since its inception in 2002.  There are currently 118 signatories to the MMoU from across the world, six of which have also successfully attained EMMoU signatory status to date.

Background

The International Organisation of Securities Commission (IOSCO) is the international body that brings together the world's securities regulators and is recognised as the global standard setter for the securities sector.  Its membership regulates more than 95% of the world's securities markets in more than 115 jurisdictions.  IOSCO develops, implements and promotes adherence to internationally recognised standards for securities regulation, and works intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda.

IOSCO established the MMoU in 2002 to provide securities regulators with the tools to better protect investors and ensure that markets are fair, efficient and transparent.  The MMoU is recognised as an international benchmark for cross-border cooperation and has been operating successfully for more than 15 years.  In 2017, IOSCO established the EMMoU, a new and enhanced standard for information sharing and cooperation to respond to the risks and challenges posed by globalisation and advances in technology since 2002.  The EMMoU harnesses the experience gained by MMoU signatories and ensures IOSCO continues to meet its objectives.  The EMMoU is designed to sit alongside the MMoU, though IOSCO’s objective is to see all MMoU signatories migrate eventually to the EMMoU.

Signatories to the IOSCO EMMoU are either signatories to Appendix A.1 or A.2 of the EMMoU. 

ASIC is currently an Appendix A.2 EMMoU signatory.  

  • Appendix A.1 signatories hold all the EMMoU powers contained in Article 3 of the EMMoU. These are powers to:
    • Obtain and share audit work powers, communications and other information relating to the audit or review of financial statements;
    • Compel physical attendance for testimony;
    • Freeze assets or provide advice on how to freeze assets;
    • Obtain and share existing subscriber records (not including the content of communications) held or maintained by internet service providers and other electronic communication providers; and
    • Obtain and share existing subscriber records (not including the content of communications) held or maintained by telephone service providers.
  • Appendix A.2 signatories hold all the EMMoU powers contained in Article 3 of the EMMoU, except those contained in Article 3(3).  These are powers to:
    • Obtain and share audit work powers, communications and other information relating to the audit or review of financial statements;
    • Compel physical attendance for testimony; and
    • Freeze assets or provide advice on how to freeze assets.

IOSCO EMMoU:

https://www.iosco.org/about/?subsection=emmou

IOSCO MMoU:

https://www.iosco.org/about/?subsection=mmou

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Last updated: 25/06/2018 11:17