Emerging market regulators demand stronger voice in global reforms
27 May 2013
Global, Emerging Markets
By Asia Asset Management
Global emerging market securities regulators met in Panama City from May 21-23 to reassert their active position in global regulatory reform efforts and increase their involvement in the early-stage development of new international regulatory reforms to ensure emerging market considerations are reflected in broader reform efforts.
Redefining the future role of the entity currently entitled the Emerging Market Committee (EMC), under the International Organization of Securities Commissions (IOSCO), the group agreed to rename the committee the Growth and Emerging Markets (GEM) Committee to better reflect the nature of the markets in which its members operate. The 86 members include some of world’s fastest growing economies and ten of the G-20 members.
The GEM Committee will seek to provide greater focus towards balancing growth and implementing regulation, including looking at greater inclusiveness, strengthening channels of communication and developing greater regulatory capacity for emerging markets.
The membership further reinforced strong support for the establishment of the IOSCO Foundation, which will assist members in their market development and capacity building efforts. Members urged industry to support the foundation expeditiously so that emerging markets can benefit from the overall activities relating to three pillars: research, education and training, and technical assistance. Increased funding of these activities will be of significant benefit to emerging market members, especially at a time of growing demand for market-based financing.
The EMC also held its elections for the new chair of the EMC. Ranjit Ajit Singh, chairman of the Securities Commission Malaysia, was elected chairman of the EMC. Bert Chanetsa, deputy executive officer capital markets, Financial Services Board, South Africa, was elected as the vice chair of the EMC.
The incoming chair, emphasised that there is a major opportunity for emerging markets to contribute to global discussions and for the committee to be a highly visible, effective and inclusive grouping for emerging markets. He added: “In doing so, emerging markets must have a stronger and more inclusive voice and be supported by an efficient structure and process. The contribution to global regulatory debate must be enhanced. Market development and capacity building efforts remain critical for many emerging markets and we look forward to the establishment of the IOSCO Foundation.”
The chair of the Board of IOSCO, Greg Medcraft, who was present at the meetings said: “Emerging financial markets have a very significant role to play in global economic growth, and the leadership of the EMC is critical to ensure IOSCO is seen as effective, pro-active and forward looking. We look forward to the support from the industry to be able to launch the IOSCO Foundation soon. I look forward to working together with the new chair and vice chair of the EMC towards achieving these objectives.”
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