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Cabinet approves multilateral MoU signed by IFSCA

Topics Covered: Important International institutions, agencies and fora, their structure, mandate.

Cabinet approves multilateral MoU signed by IFSCA:

Context:

The Cabinet has approved a multilateral MoU signed between the International Financial Services Centres Authority (IFSCA), International Organization of Securities Commissions (IOSCO), and International Association of Insurance Supervisors (IAIS).

 

Background:

In 2002 IOSCO adopted a multilateral memorandum of understanding (IOSCO MMoU) designed to facilitate crossborder enforcement and exchange of information among the international community of securities regulators.

  • Then in 2005 IOSCO MMoU become the benchmark for international cooperation among securities regulators.

 

About IOSCO:

  • Formed in 1983, it is an association of organizations that regulate the world’s securities and futures markets.
  • Members are typically primary securities and/or futures regulators in a national jurisdiction or the main financial regulator from each country.
  • Headquarters: Madrid, Spain.

 

Its mandate is to:

  1. Develop, implement, and promote high standards of regulation to enhance investor protection and reduce systemic risk.
  2. Share information with exchanges and assist them with technical and operational issues.
  3. Establish standards toward monitoring global investment transactions across borders and markets.

 

About the International Association of Insurance Supervisors (IAIS):

  • It is a voluntary membership organization of insurance supervisors from over 190 jurisdictions, constituting 97% of the world’s insurance premiums.
  • It is the international standards-setting body for the insurance sector.
  • It was established in 1994 and operates as a verein, a type of non-profit organisation under Swiss Civil Law.
  • The IAIS is hosted by the Bank for International Settlements (BIS).

 

Insta Curious: 

Do you know what inclusive insurance is? Read Here

 

InstaLinks:

Prelims Link:

  1. What are IFSCs?
  2. Can they be set up in SEZs?
  3. India’s first IFSC.
  4. Services they provide?
  5. Limitations.
  6. About IOSCO.

Mains Link:

Discuss the significance of international financial services centres.

Sources: the Hindu.