INTERNATIONAL COOPERATION
INTERNATIONAL COOPERATION
ESMA’s role in the field of international cooperation
International cooperation - ESMA
COOPERATION WITH INTERNATIONAL ORGANISATIONS
With the objective to ensure financial stability, orderly markets and investor protection in the EU, ESMA has continuously contributed to the international dialogue at the IOSCO and FSB levels, in particular in the areas of market-based finance, financial market infrastructures, credit ratings and financial benchmarks. ESMA also cooperates with other relevant international bodies, including the IFRS Advisory Council, the IMF and the OECD.
IOSCO - International Organisation of Securities Commissions
IOSCO is the international body that brings together the world's securities regulators. IOSCO develops, implements and promotes adherence to internationally recognised standards for securities regulation. It works intensively with the G20 and the FSB on the global regulatory reform agenda.
ESMA's memberships include:
ESMA's contributions unclude:
FSB - Financial Stability Board
The Financial Stability Board coordinates national financial authorities and international standard-setting bodies as they work toward developing strong regulatory, supervisory and other financial sector policies.
ESMA primarily participates and contributes to the Standing Committee on Assessment of Vulnerabilities (SCAV) and Steering Committee on Non-Bank Financial Intermediation (SCN) of the FSB.
BILATERAL COOPERATION
ESMA is engaged in bilateral relations with 50 third-countries’ (non-EU) regulators and stakeholders, of both regulatory and supervisory nature.
ESMA participates in regulatory dialogues with the EU’s key economic partners, in particular the USA, the UK, Japan, China, Canada, India, Brazil and Russia.
The goals of these talks are:
EQUIVALENCE
The EU may recognise that the regulatory or supervisory regime of a non-EU country is equivalent to the corresponding EU regime.
Deference
Principle of “Deference” (2013 St Petersburg G20 Leaders' Declaration):
“Jurisdictions and regulators should be able to defer to each other when it is justified by the quality of their respective regulatory and enforcement regimes, based on similar outcomes, in a non-discriminatory way, paying due respect to home country regulation regimes.”
Deference determinations aim to:
For more information on the concept of deference across global jurisdictions: IOSCO Report to the G20 on Good Practices on Processes for Deference
Equivalence
The main EU approach to “deference”, referred to as equivalence, involves a positive assessment of the third-country framework. The EU may determine that the regulatory or supervisory regime of a third country is equivalent to the corresponding EU regime and this allows authorities in the EU to rely on supervised entities' compliance with equivalent rules in such third country.
ESMA's role
