9 Dec 2020

Finma Esma Cooperation Agreement

Post by Mobile Design Guy

FINMA has concluded international bilateral agreements with various foreign authorities. These agreements are essential to facilitate cooperation, especially when FINMA is in regular contact with a foreign authority. The conclusion of an agreement may also be conditional on the admission to a foreign market of controlled establishments in Switzerland or vice versa. In addition to bilateral agreements, there are also multilateral cooperation agreements. For example, both IOSCO and IAIS have developed Multilateral Memorandums of Understanding (MMoU). OIOSCO MMoU, IOSCO EMMoU (Enhanced Memorandum of Understanding) and IAIS MMoU set an international standard for surveillance cooperation. FINMA and many supervisory authorities in other countries have signed these agreements. FINMA organises supervisory or crisis management colleges for various financial groups based in Switzerland. In order to regulate cooperation in this context, it has concluded (multilateral) agreements with the relevant foreign supervisory authorities. FINMA also participates in higher education institutions of foreign supervisory authorities and has signed agreements to this effect. Because of their non-binding nature, FINMA agreements do not create final rights or obligations for FINMA, foreign partner authorities and other third parties.

They should therefore be distinguished from the contracts. For this reason, the content of the agreements is generally not published. International agreements are a proven way to improve cooperation between supervisory authorities. The term “Memorandum of Understanding” is often used in an international context; other synonyms: “cooperation agreement” or “cooperation agreement.” The supervisory authorities conclude such agreements to ensure cooperation. The conditions for cooperation are defined taking into account national legislation (cooperation). The Basel Committee on Banking Supervision is a committee of the Bank for International Settlements. The CSSF also participates in various working groups set up by the Basel Committee. The International Organization of Securities Commissions (IOSCO) is an international body made up of global securities commissions. IOSCO develops, implements and promotes compliance with internationally recognized securities regulatory standards. She works extensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda.

The IOSCO Investor Education Gateway provides information on the online investor education activities of some IOSCO members, as well as publications and presentations from IOSCO on investor training.