This presentation by Isabel Pastor (Head of Enforcement & Cooperation Senior Advisor, Special Projects, IOSCO) was made during the discussion “Hearing on Thinking out of the Competition Box: Enforcement Co-operation in Other Policy Areas” held for competition authorities officials on 21 June 2022. More materials on the topic can be found at http://oe.cd/tocb. This presentation was uploaded with the author’s consent.

1. “International Enforcement Cooperation and the IOSCO
MMoU/EMMoU”
OECD DIRECTORATE FOR FINANCIAL AND ENTERPRISE AFFAIRS
COMPETITION COMMITTEE
135th meeting of Working Party 3 on Co-operation and Enforcement
Item 3. Hearing on Thinking out of the Competition Box: Enforcement Co-operation in
Other Policy Areas
1
Isabel Pastor
Head of Enforcement & Cooperation
and Senior Advisor, Special Projects
IOSCO General Secretariat
21 June 2022

2. 2
International Cooperation
and the IOSCO MMoU/EMMoU
1. What is IOSCO and what do we do?
2. Is the MMoU/EMMoU a success story for IOSCO and its members?
3. Why do we need multilateral cooperation instruments and why securities regulators
could hardly function without them?
4. What is the MMoU? What is it not?
5. What does the MMoU cover?
6. What is the EMMoU and what does it cover?
7. Why has the MMoU/EMMoU been a success story?
8. Obstacles to success. Matters to consider when taking a decision about going ahead.

3. 3
1. What is IOSCO and what do we do?

4. What is IOSCO and what do we do?
IOSCO
• International Organization of Securities Commissions
• Primary international cooperative forum for securities market
regulatory agencies
• More than 230 members from all around the world: securities
regulators, industry groups, exchanges, FMIs and IOs
• Was created in 1983
• Precedent: Inter-American Association of Securities Commissions
• Allow members to exchange information with a view to:
 Develop and coordinate the implementation of securities
markets standards
 Develop securities markets and improve their efficiency
 Ensure markets are fair and transparent

5. 5
2. Is the MMoU/EMMoU a success story for
IOSCO and its members?

6. 6
The MMoU as a success story – MMoU statistics
Requests made
pursuant to the
MMoU
(2003-2021)
Over 45,000 exchanges of information
under the MMoU (2003-2021)
Note: The figure for 2021 is provisional

7. 7
The MMoU as a success story - MMoU signatories: figures
Number of MMoU
signatories and non-
signatories
(As of June 2022)
126
27
Signatories Non-signatories
Number of new
MMoU signatories
per year
(As of June 2022)
8
16
2
3
6
9
5
16
7
8
11
8
4
3 3
6 6
3
0
1 1
200220032004200520062007200820092010201120122013201420152016201720182019202020212022
Series 1

8. 8
3. Why do we need multilateral cooperation
instruments and why securities regulators could
hardly function without them?

9. 9
“The increasing internationalization of financial activities and
the globalization of markets can put information beyond the
immediate jurisdictional reach of one individual regulator.
This puts an additional emphasis on the need for
international cooperation.”
(IOSCO Methodology, Preamble to Principles relating to cooperation, 13-15)
Why do we need multilateral cooperation instruments and why securities regulators could hardly
function without them?

10. 10
Why do we need multilateral cooperation instruments and why securities
regulators could hardly function without them?
The importance
of International
Cooperation
Markets are globally
interconnected and thus a level
playing field needs to be
ensured
Due to the rising international
activity in the securities and
derivatives markets there is a
great need for mutual
cooperation, and consultation
among securities regulators
Misconduct and vulnerabilities
are easily widespread at a global
level
Regulators have a dual mandate:
protecting investors while
promoting the development of
capital markets
There is a need for complying
with, and the enforcement of,
domestic securities and
derivatives regulatory
frameworks
Authorities are expected to have
in place sound principles on
international cooperation that
allow them to actively
participate in the deterrence of
misconduct
Authorities are globally
recognized for being part of the
international cooperation
network
IOSCO MMoU/EMMoU
signatories are recognized as
jurisdictions with sound
confidentiality regimes and high
cooperation standards

11. 11
Why do we need multilateral cooperation instruments and why securities
regulators could hardly function without them?
Benefits of
International
Cooperation
High quality and globally
accepted principles for
international cooperation
allow jurisdictions to be
recognised as transparent
capital markets
Market participants and
investors operate in capital
markets with clear and
enforceable regulatory
frameworks
Having in place an
international cooperation
framework implies having
sound confidentiality
safeguards
Foreign market participants
are willing to enter into
domestic capital markets
because of the level playing
field
Foreign regulators will be able
to cooperate with the
domestic regulator based on
the observance of the same
international standards
Any financial misconduct
involving a foreign market
participant can be channelled
through the IOSCO MMoU
Mutual recognition and
regulatory equivalence
processes can be
implemented faster because
of the adherence to
international standards

12. 12
4. What is the MMoU? What is it not?

13. 13
What is the MMoU? What is it not?
Multilateral
Memorandum of
Understanding
Concerning Consultation
and Cooperation and the
Exchange of Information
(MMoU) The 2002 MMoU has become the global
benchmark for international cooperation in
the enforcement of securities
In 2002, IOSCO established its first
Multilateral Memorandum of Understanding
("2002 MMoU") to support its objectives of
protecting investors and ensuring that
markets are fair, efficient and transparent

14. 14
What is the MMoU? What is it not?
Sets an international benchmark for cross-border
co-operation
•The MMoU is a practical and effective
international instrument that assists
regulators to enforce their securities and
derivatives laws
It is a tool for combating cross-border fraud
and misconduct
It represents a common understanding
among its signatories about how signatories
should consult, cooperate, and exchange
information
Derives its legal basis from the domestic legislation
of the signatories who agree to cooperate with one
another and they need to demonstrate that they can
The IOSCO MMoU

15. 15
What is the MMoU? What is it not?
What is it not?

16. 16
5. What does the MMoU cover?

17. 17
What does the MMoU cover?
The MMoU
includes
• The scope of the assistance
• How to make a RFA and how to execute it
• Permissible uses of information
• Confidentiality requirements
• The concept of Unsolicited Assistance
Activities under
the scope of
the MMoU
• Insider dealing and market manipulation
• Misrepresentation of material information
• Handling of investor funds, and customer orders
• Registration, issuance, offer, sale of securities and derivatives
• Activities of market intermediaries, investment and trading advisers
required to be registered, collective investment schemes, brokers, dealers,
and transfer agents;
• Operations of markets, exchanges, and clearing and settlement entities

18. 18
What does the MMoU cover?
What does it
mean to be a
signatory to the
MMoU?
A statementof a securitiesregulator`s
commitmentwith regardto mutual
assistanceand the exchangeof
informationfor the purposeof enforcing
and securingcompliancewith the laws
and regulationsof the relevant
jurisdictions
A statementthata securitiesregulatorhas thelegal
abilityand willingnessto:
- Gatherinformationkeyto investigatingand
prosecutingenforcementmatters
- Provideinformationto foreigncounterpartsfor
theusesdescribedin theMMoU
- Protecttheconfidentialityof information

19. 19
Commitments
• Ability to obtain
information on behalf
of another signatory
whether or not the
violation being
investigated abroad
constitutes a domestic
violation
•Authority to compel relevant
information from any person:
both regulated and non-
regulated persons, including
legal entities and natural
persons
• Authority to obtain
information to
reconstruct securities
transaction, including
banking trading and
brokerage information,
as well as beneficial
ownership info • Ability to transmit
the information to
another signatory
Ability to preserve the
confidentiality of
information received
from another signatory
A signatory to
the MMoU has
made
commitments
in 5 important
areas
What does the MMoU cover?

20. 20
What does the MMoU cover?
Assistance can be
provided under the
MMoU in both
criminal and non-
criminal (civil,
administrative)
proceedings
The Requesting Authority may use non-public information and non-
public documents sent in response to a RFA
For the purposes set for in the RFA, including ensuring compliance with the Laws
and Regulations related to the request
For a purpose within the general framework of the use stated in the request for
assistance, including conducting a civil or administrative enforcement
proceedings
Assisting in a self-regulator organization's surveillance or enforcement activities
Assisting in a criminal prosecution, or conducting an investigation for any general
charge applicable to the violation of the provision specified in the request where
such general charge pertains to a violation of the Laws and Regulations
administered by the Requesting Authority
If a Requesting Authority intends to use information furnished under this MMoU for
any purpose other than those stated, it must obtain the consent of the Requested
Authority

21. 21
6. What is the EMMoU and what does it cover?

22. 22
What is the EMMoU and what does it cover?
Why an
Enhanced
MMoU
(EMMoU) was
necessary
The technology and
society have evolved
rapidly
Thus, enforcement and
cooperation have also
evolved
There has been a
significant increase in
globalization and
interconnectedness of
financial markets
There have been
changes in the way
securities and
derivatives markets
operate
Violations of regulatory
frameworks have
changed too
It is critical to enhance
information sharing and
cooperation between
IOSCO members
It is critical to keep pace
with technological,
societal and market
developments
The EMMoU implies
that signatories have to
deliver a higher level of
assistance

23. 23
What is the EMMoU and what does it cover?
Establishing
the EMMoU
A
• To obtain and share AUDIT work papers, communications and other information
relating to the audit or review of financial statements
C
• To COMPEL physical attendance for testimony (by being able to apply a sanction
in the event of non-compliance)
F
• To FREEZE assets if possible, or, if not, advise and provide information on how to
freeze assets, at the request of another signatory
I
• To obtain and share existing INTERNET service provider records (not including the
content of communications) including with the assistance of a prosecutor, court
or other authority, and to obtain the content of such communications from
authorized entities
T
• To obtain and share existing TELEPHONE records (not including the content of
communications) including with the assistance of a court, prosecutor or other
authority, and to obtain the content of such communications from authorized
entities
In March 2017,
IOSCO launched the
EMMoU, which
refers to additional
enforcement powers
(ACFIT) as follow:
Note: The EMMoU envisages
the obtaining and sharing of
existing communications
records held by regulated
firms

24. 24
7. Why has the MMoU/EMMoU been a success story?

25. 25
The MMoU as a success story
Mark of credibility as a regulator
Screening: technical group with no political
interference
Monitoring the operations of the MMoU
The MMoU was made compulsory and
sanctions were imposed
Intensive TA program
The IOSCO MMoU

26. 26
8. Obstacles to success. Matters to consider
when taking a decision about going ahead

27. 27
Matters
to
consider
Convincing key
players about the
vision
Members needed to
sign to achieve
critical mass
Commitment from
members for
rigorous screening
Commitment from
members for
rigorous monitoring
Data protection
legislation: strategy
to manage this
potential obstacle
Long term project
which requires time
& resources
E.g. TA projects to
negotiate with
governments
Obstacles to success. Matters to considerwhen taking a decisionabout going ahead

28. 28
Administrative Arrangement
“The transferring Authority will transfer personal data only for the
legitimate and specific purpose of assisting the receiving Authority to fulfil
its regulatory mandate and responsibilities, which include regulating,
administering, supervising, enforcing and securing compliance with the
securities or derivatives laws in its jurisdiction.
The receiving Authority will not further process the personal data in a
manner that is incompatible with these purposes, nor with the purpose
that may be set out in any request for the information.”
(Administrative arrangement for the transfer of personal data between
Each of the European Economic Area (“EEA”) Authorities set out in Appendix A and
Each of the non-EEA Authorities set out in Appendix B, Personal data protection safeguards, 1. Purpose limitation)

29. 29
Administrative Arrangement
Signatories
of the AA (as
of June 2022)
31 Non-EEA
Authorities
30 EEA Authorities

30. 30
For questions, please contact the MMoU Team
at MMoUTeam@iosco.org