International Cooperation
ESMA engages internationally with key international financial institutions by promoting the adoption of high regulatory standards globally, as these may inform EU financial law ultimately. This includes membership and active contribution to IOSCO and FSB, as well as other relevant bodies, such as the IFRS Advisory Council, the IMF, and the OECD. ESMA also engages in regulatory and supervisory cooperation with third-country authorities. In some cases, engagement is supported by bilateral or multilateral agreements.
IOSCO
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)
FSB
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 Standing Committee on Supervisory and Regulatory Cooperation (SRC), and the Resolution Steering Group (ReSG).
Third-country cooperation
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, such as the USA, the UK, Japan, China, Canada, and Switzerland.
Regulatory equivalence
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.