The SEC is a member, along with 124 other agencies, of IOSCO, the network of global securities regulators. IOSCO's signature achievement is the MMoU, or multilateral memo of understanding, on enforcement cooperation. The idea is that if you think your own securities laws are being violated, but the evidence is located abroad, the MMoU outlines the cooperation you can expect to receive from foreign regulators in helping you build your case.
IOSCO does not want any of its members uncommitted to the MMoU, so much so that one of the developments that has come out of its annual meeting, which is happening this week, is a set of rising sanctions for any member who fails to sign the agreement. Every six months, something newly bad happens to you:
- From 30 September 2013: All outstanding non-signatory members will be restricted from nominating candidates from their organization for election or appointment to leadership positions.
- From 31 March 2014: All outstanding non-signatory members in leadership positions will be asked to step down.
- From 30 June 2014: The participation of non-signatory members in IOSCO Policy Committees will be suspended.
- From 30 September 2014: The voting rights of all remaining non-signatory members will be suspended.
And that's it, you're out of the organization. Another example of how an international organization that cannot resort to a tribunal seeks compliance with its rules.
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