International Organizations

International Organization of Securities Commissions (IOSCO)

IOSCO is a multilateral organization of securities regulators in which the SEC actively participates. IOSCO members have resolved to: (i) cooperate together to promote high standards of regulation in order to maintain just, efficient and sound markets; (ii) exchange information on their respective experiences in order to promote the development of domestic securities markets; (iii) unite their efforts to establish standards and an effective surveillance of international securities transactions; and (iv) provide mutual assistance to promote the integrity of the markets by a rigorous application of international standards and by effective enforcement against offenses. IOSCO's Objectives and Principles of Securities Regulation is the benchmark standard for securities regulators and one of the twelve key standards for financial stability as recognized by the Financial Stability Forum.

The SEC participates in IOSCO’s Presidents’, Technical and Executive Committees, each of which is described below:

• IOSCO Presidents’ Committee. The Presidents' Committee, which meets once a year during the Annual Conference, is made up of all the Presidents of member (regular and associate) agencies and has all the powers necessary or convenient to achieve the purpose of the organization.
   
• IOSCO Technical Committee. The objective of the IOSCO Technical Committee is to review major securities regulatory issues and to coordinate practical responses to these concerns. The work of the Technical Committee is divided into five standing committees, covering five major functional subject areas:
   
• Multinational Disclosure and Accounting ― Standing Committee 1
   
• Regulation of Secondary Markets ― Standing Committee 2
   
• Regulation of Market Intermediaries ― Standing Committee 3
   
• Enforcement and the Exchange of Information ― Standing Committee 4
   
• Investment Management ― Standing Committee 5
   
• IOSCO Executive Committee. The Executive Committee undertakes activities necessary to achieve the objectives of IOSCO.

United States–European Union Financial Markets Regulatory Dialogue

The US-EU Financial Markets Dialogue (Dialogue) was launched in 2002 and includes representatives of the US Treasury, SEC and the Federal Reserve Board. The Dialogue serves as a forum for discussion of financial regulatory issues of mutual concern, including the spillover effects of domestic regulatory initiatives on foreign market participants. The Dialogue serves to enhance understanding of each other's system of regulation, and explore areas of regulatory cooperation and convergence in the development of high-quality regulation.

China Securities Regulatory Commission

The SEC and the China Securities Regulatory Commission (CSRC) announced in May 2006 a new relationship to increase their cooperation and collaboration through an enhanced bilateral dialogue. The new dialogue has three primary objectives:

• to identify and discuss securities markets regulatory developments of common interest, particularly those relevant to reporting requirements for public companies listed in one another's markets;
   
• to improve cooperation and the exchange of information in cross-border securities enforcement matters; and
   
• to continue and expand upon the existing program of training and technical assistance provided by the SEC to the CSRC.

As set out in the terms of reference, the dialogue will take place through regular contacts among senior staff and between the Chairmen of the SEC and CSRC.

Committee of European Securities Regulators (CESR) Dialogue

In addition to the US-EU Financial Markets Dialogue, the SEC has created a framework for cooperation and collaboration with the Committee of European Securities Regulators (CESR). In 2004, the SEC and CESR announced creation of a Dialogue with two primary objectives: (i) identify emerging risks in the US and the EU securities markets for the purpose of improving the ability to address potential regulatory problems at an early stage; and (ii) early discussion of potential regulatory projects in the interest of facilitating converged, or at least compatible, ways of addressing common issues. Issues discussed to date include: the development of an infrastructure to support the consistent application, interpretation and enforcement of international financial reporting standards, oversight of credit rating agencies, hedge fund regulation and capital market structure issues.

In August 2006, the SEC and CESR entered into a work plan, the main focus of which is the application by internationally active companies of IFRS and US GAAP in the United States and the European Union, respectively. The staff of the SEC and CESR-Fin, the expert group within CESR focused on financial reporting, will share information about areas of IFRS and US GAAP that raise questions in terms of high-quality and consistent application. In addition, where appropriate, the staff of the SEC and the staff of CESR Members will consult on issuer-specific matters regarding the application of US GAAP and IFRS in order to facilitate a solution that contributes to the consistent application of US GAAP or IFRS by companies that are both listed in the EU and registered with the SEC. The SEC-CESR work plan can be found here.

Japanese Financial Services Agency (JFSA) Dialogue

In January 2006, the SEC and the JFSA announced terms of reference for increased cooperation and collaboration through a high level bilateral dialogue. This dialogue has two main objectives: (1) to identify and discuss regulatory issues of common concern; and (2) to promote cooperation in the exchange of information in cross-border securities enforcement matters. The dialogue will be composed of regular meetings and ad hoc information exchange at the staff level and between high-level representatives of the SEC and JFSA.

Korea Financial Supervisory Commission

In June 2006, the SEC and the KFSC announced terms for regulatory dialogue between the two agencies. This new dialogue has two main objectives: to improve cooperation and the exchange of information in cross-border securities enforcement matters; and to identify and discuss regulatory issues of common concern. The dialogue will be composed of regular meetings and ad hoc information exchange at the staff level and between high-level representatives of the SEC and FSC, as well as the Korea Financial Supervisory Service (FSS), the implementing body of the FSC.

Financial Action Task Force (FATF)

The Financial Action Task Force (FATF) is an inter-governmental organization, created in 1989 by the G7, to reform legislation and regulation around the world to strengthen the global anti-money laundering infrastructure. The work of the FATF focuses on three principal areas: (i) setting standards for national anti-money laundering and counter terrorist financing programs; (ii) evaluating the degree to which countries have implemented measures that meet those standards; and (iii) identifying and studying money laundering and terrorist financing methods and trends.

Joint Forum

Established in 1996, the Joint Forum deals with cross sectoral issues in banking, securities and insurance supervision. The Joint Forum is a group of technical experts working under the umbrella of three international groupings of supervisory bodies: the Basel Committee on Banking Supervision, the International Organization of Securities Commissions and the International Association of Insurance Supervisors. The work of the Joint Forum encompasses issues relating to financial conglomerates as well issues of common interest to the three parent committees. The Joint Forum has specific mandates to undertake work on risk assessments and capital, the disclosure of financial risks and the cross-sectoral implications of extreme exogenous shocks.

Financial Stability Forum (FSF)

The Financial Stability Forum (FSF) was created as part of the reforms prompted by the 1997 Asian financial crisis to serve as a discussion forum to promote the stability and integrity of the global financial system, assess potential vulnerabilities, and improve co-ordination and information exchange among various financial, regulatory, and supervisory authorities.

The FSF is comprised primarily of representatives of G-7 finance ministries, central banks, and financial regulatory and supervisory authorities, along with the international financial institutions (the World Bank and International Monetary Fund) and international regulatory bodies (IOSCO, the Basel Committee on Banking Supervision and the International Associations of Insurance Supervisors). The FSF maintain a Compendium of Standards which lists benchmarks for delivering stable and well functioning financial systems. Among the 12 key standards identified for priority implementation by the FSF include those related to corporate governance and IOSCO's standards for securities regulation.

Organization for Economic Cooperation and Development (OECD)

The Organization for Economic Cooperation and Development (OECD) is best known for its publications and statistics, though its work covers a wide range of economic and social issues. It produces internationally agreed instruments, decisions and recommendations to promote rules of the game in areas where multilateral agreement is necessary for individual countries to make progress in a global economy. The OECD plays a particularly prominent role in fostering good governance in the public and corporate sectors.

http://www.sec.gov/about/offices/oia/oia_intlorg.htm