By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE) – The International Organisation of Securities Commissions (IOSCO) Tuesday said its Board has approved a task force on cross border regulation.

The board of IOSCO gave this approval at a recent meeting it held in Montreal Canada.

According to David Wright, Secretary-General, and Tajinder Singh, Deputy Secretary-General, in describing IOSCO’s current work program and outlining new initiatives, said the commission apart from the task force on cross border regulation also created a committee on retail investors.

This is coming on the heels of IOSCOs meeting held June 28 2013 in Madrid, Spain with 60 market participants from more than 20 countries, including some 30 international financial associations and investor groups.

The meeting chaired by Greg Medcraft, IOSCO Board Chair covered a range of subjects, including IOSCO’s work on the extensive international financial regulatory reform agenda.

Medcraft outlined the challenges faced by securities regulators globally and the role IOSCO will play in addressing them.

“The major challenges we face are structural change, the risks posed by innovation and the ongoing globalisation of our markets. By being proactive and forward looking, IOSCO through its standard setting work, engagement with industry and stakeholders and co-operation among its members can make a significant contribution to those challenges. This meeting is a fine example of the way engagement with industry can help us to better understand these challenges and how we should respond,” he said.

Medcraft affirmed that participants welcomed IOSCO’s work on cross border regulation and emphasised its importance in addressing the issues many face in conducting business across a number of jurisdictions.

The Commissions Secretariat staff also outlined the risks its research team had identified in recent work – including risks posed by the low interest rate environment, managing collateral, the risks posed by central counterparties and cyber-crime.

Apart from these, the meeting also discussed the opportunities behavioural economics offers securities regulators.

Medcraft emphasised the growing role behavioural economics and social media will play in IOSCO’s work, particularly in its efforts to improve informed decision making by retail investors.

He said the discussions during the meeting underscored IOSCO’s determination to engage with industry and stakeholders in developing early and forward-looking responses to the challenges that securities markets face in a rapidly evolving environment.

“This was an important and constructive engagement with stakeholders and is part of our on-going endeavor to meet the IOSCO objectives of reducing systemic risk and ensuring that investors are confident and informed, and markets are fair and efficient.” Medcraft said.