2013 List of Non-signatories to the MMoU

The IOSCO Multilateral Memorandum of Understanding (MMoU), established in 2002, provides a global framework for enforcement co-operation between securities regulators, thereby helping to ensure effective regulation and to preserve the strength of securities markets. Signatories represent approximately 95% of global securities markets, and the IOSCO MMoU is the leading instrument for multi-lateral co-operation in the enforcement of securities regulation. A full list of MMoU signatories can be found here.

Prior to signing the MMoU, applicant regulators must demonstrate their ability to provide assistance to other regulators in enforcement investigations. That will include being able to obtain specific forms of information and disclose that information to overseas regulators.

Applicants are required to undergo a rigorous screening process, during which their capacity for co-operation is examined in detail by a group of experts. Often initial applications prove unsuccessful, and applicants are required to enhance their powers by effecting legislative or other changes. IOSCO members who have previously applied unsuccessfully to become signatories, but have formally expressed their commitment to taking the steps necessary to achieve MMoU compliance, are listed on Appendix B to the MMoU.

In some instances, and to obtain a provisional view, regulators will provide draft legislation, regulations or other measures to IOSCO (that may form all or part of the proposals intended to meet the MMoU requirements) prior to submission to their domestic legislatures or equivalent approving bodies. This may potentially improve the prospects of a swift and successful re-application in due course. In other instances, however, IOSCO will be provided with the legislation, regulations or other measures intended to achieve MMoU compliance only shortly before or indeed after they have come into force, in the course of the re-application process.

In all cases, IOSCO's experts (the MMoU Screening Group, which meets to consider applications and re-applications three times a year) must be wholly satisfied with an applicant's ability to co-operate under the MMoU before they can be invited to become signatories.

In 2005, IOSCO asked all members of IOSCO (with primary responsibility for securities regulation within their jurisdictions) to become MMoU signatories, or to be listed under Appendix B of the MMoU, having demonstrated their commitment towards becoming signatories. Then in 2010, IOSCO asked all of those listed on Appendix B to apply to become signatories by 1 January 2013. In May 2012, the Presidents Committee resolved that the IOSCO Board would, at its first meeting of 2013 evaluate the overall MMoU implementation situation and, if necessary, propose to the Presidents Committee graduated additional measures to encourage those members who have failed to become MMoU signatories.

IOSCO is committed to ensuring the application of the MMoU across the globe, and wishes to encourage all eligible members to take the necessary steps to become signatories. In the current global environment, not being a signatory of the IOSCO MMoU may weaken international enforcement efforts and may create the perception that a non-signatory jurisdiction presents an attractive location for those who would perpetrate crime and misconduct. The MMoU has been in operation for over ten years and, in line with IOSCO resolutions, a list of members who have not yet become signatories is published below. The list includes objective information as to the progress made by those non-signatory members towards becoming signatories.

2013 List of MMoU Non-Signatories

* The Executive Committee decided that IOSCO should create a list after 1 January 2013 to include members who had fail to make an application to advance to Appendix A of the IOSCO MMoU. The list is called '2013 List', but it is kept updated