Emerging market regulators committed to strengthening sustainable finance and cyber resilience

Leading emerging market regulators met last week in Colombo, at the IOSCO Growth and Emerging Markets (GEM) Committee annual meeting and conference hosted by the Securities and Exchange Commission of Sri Lanka.

The GEM Committee annual meeting and conference were preceded by the meeting of the IOSCO Asia-Pacific Regional Committee (APRC).

The two day event attracted more than 300 participants from 50 jurisdictions. Prime Minister Ranil Wickremasinghe provided the keynote address at the conference.

Enhancing sustainable and innovative market-based financing, participants discussed measures to address challenges in scaling up sustainable market based financing, including the role of policy makers, regulators and industry participants in promoting green financing solutions within emerging markets.

The role of International Financial Institutions in supporting sustainable capital markets was also reviewed.

GEM Committee Chairman and IOSCO Board Vice Chairman Ranjit Ajit Singh said: “There was agreement among emerging market regulators to accelerate the development of sustainable finance, including the establishment of a Task Force on Sustainable Finance.”

Other substantive areas discussed included key issues and challenges regarding liquidity in emerging capital markets, as well as possible measures in promoting liquidity to help spur market growth and development. Participants also discussed how fintech is shaping capital markets and the balance between innovation and investor protection, particularly in areas such as crypto currencies and initial coin offerings (ICOs).

The GEM Committee also conducted a cyber simulation exercise developed in collaboration with market experts to strengthen regulatory capabilities and preparedness in tackling cyber threats.
The regulatory workshop provided participants with a better understanding of key cyber developments, risks and threats impacting global financial markets.

The workshop also analysed scenarios and outlined measures to strengthen mechanisms, protocols and responses of regulators.

Singh said: “Greater regulatory cooperation is critical in strengthening resilience and regulatory expertise in relation to cyber threats.”

The GEM Committee also announced the election of Kenya Capital Market Authority CEO Paul Murithi Muthaura as the second Vice-Chair of the GEM Committee.

The APRC meeting started with the remarks by the new Chair, Japan Financial Services Agency International Affairs Deputy Commissioner Jun Mizuguchi, who was recently appointed APRC Chairman.

In its discussion, the APRC focused on issues, including initial coin offerings (ICOs), the effective supervision of harmful but legal conduct, common enforcement challenges for the region, the impact of European Union regulations on Asia-Pacific markets and capacity building initiatives in the region.

Mizuguchi of the APRC said: “I had the pleasure of chairing my first APRC meeting here in Colombo and am grateful it was held back to back with the GEM Committee Annual Conference and Meeting. Fintech and cyber resilience have no borders and the public conference offered a unique opportunity for emerging market jurisdictions and members from our region to interact and share views on relevant issues, including these pressing matters.”