Securities and Futures Commission (SFC) chief
executive Ashley Alder has outlined intentions to form a
college of Asian regulators to supervise global financial
Speaking at the Asia Securities Industry and
Financial Markets Association’s (Asifma) annual
conference in Singapore yesterday, Alder emphasised that it is
nearly impossible to properly supervise the parts of large
global firms alone.
This follows remarks Alder made last week at another industry conference
announcing that Iosco’s Asia-Pacific Regional
Committee plans to release a road map on what regulators in the
region want to achieve together to develop domestic capital
"The overarching need is to work far better
together to promote efficient flows of capital across regional
markets and to encourage a wide range of cross-border financial
activities," he said.
But carrying that work out in a way that benefits
Asia and results in positive engagement with the EU and the US
– where the vast majority of firms are based
– will be a challenge, he said.
To that end Alder proposed setting up new bilateral
and multinational supervisory agreements between securities
regulators, which would start by setting up regional
supervisory memoranda of understanding (MOUs) and multilateral
regional supervisory colleges for large firms.
"We have already started discussions on this," he
said, adding that the colleges of supervisors are meant to be
permanent – but flexible – structures for
cooperation and coordination among regulators.
In an interview following his speech, he emphasised
that Asia depends on and welcomes the presence of global
financial institutions. But decision-making within these
organisations is disparate, he said.
"In territories in Singapore and Hong Kong
it’s actually quite difficult to get a grip on
where decisions are being made and where the responsibility
lies for activities that affect our markets," he said.
Alder added that previous supervisory cooperation
from a securities regulator perspective has been virtually
non-existent, but hoped that will change quickly.
However a timeline has not yet been established.
"In terms of timeline, I can’t give you one
because we’ve just started," he said. "But
we’ll try to push it as fast as we can."
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