International Cooperation

The International Organisation of Securities Commissions (IOSCO) is an association of securities regulators that develops and promotes adherence to international standards.

ESMA is an associate member of IOSCO and holds a seat as observer to its Board. ESMA membership in IOSCO also includes the following groups:

• IOSCO Policy Committees (eg. credit ratings and asset management)
• Task forces (e.g., sustainable finance and fintech).
• Committee on Emerging Risks
• Financial Stability Engagement Group (FSEG)
• European Regional Committee (ERC)

Selected ESMA contributions:

• IOSCO-ESMA Administrative Arrangement in the area of data privacy
• Report to the G20 entitled Market Fragmentation and Cross-border Regulation
• Report on ESG ratings and data products providers
• Report on the use of global supervisory colleges

The Financial Stability Board (FSB) coordinates national financial authorities and international standard-setting bodies as they work toward developing strong regulatory, supervisory and other financial sector policies. 

ESMA primarily contributes to policy discussions coordinated by the Standing Committee on Assessment of Vulnerabilities (SCAV), the Steering Committee on Non-Bank Financial Intermediation (SCN), and the Resolution Steering Group (ReSG).

ESMA also advances regulatory and supervisory cooperation with non-EU jurisdictions, by directly engaging with regulators and other stakeholders located in around 50 third countries. Ultimately, ESMA monitors regulatory developments and their impact in the EU. ESMA also promotes regulatory convergence and explores possibilities for mutual recognition of relevant laws.

Additionally, ESMA takes part in regulatory dialogues with the EU’s key economic partners, in particular the USA, the UK, Japan, China, Canada, India, and Brazil.

In certain cases, the EU may determine that the regulatory or supervisory regime of a non-EU country is equivalent to the corresponding EU framework.

Recognition makes it possible for authorities in the EU to rely on compliance with the equivalent foreign framework.

ESMA does not prepare or grant equivalence decisions, however it plays a role in this process by providing the European Commission with technical advice. Following the adoption of a decision, ESMA monitors regulatory and supervisory developments, as well as enforcement practices and market developments in the third country which may have an impact upon the equivalence regime. ESMA also cooperates with the relevant third country authorities in the context of equivalence, which can take place on the basis of an associated MoU.

On 31 January 2020, the UK formally left the EU. The withdrawal agreement then entered into force and marked the start of a transition period that lasted until 31 December 2020. At the end of the transition period, the EU–UK Trade and Cooperation Agreement entered into force and the UK’s departure from the EU was completed.

In advance of the end of the transition period, ESMA prepared extensively with EU and UK authorities to ensure that stakeholders are aware of the impact of Brexit on various obligations and provisions in EU law, and that all cliff-edge risks in financial markets were mitigated. ESMA now actively monitors the UK-related developments, to understand the impact of such developments for the EU.

The UK is now a non-EU jurisdiction like any other and is treated as such. However, due to the proximity and extensive links between the EU and UK financial markets, an enhanced level of supervisory cooperation and information sharing between ESMA, NCAs and UK authorities is necessary.