The Tribune

The Securities Commission has joined a small group of regulators approved to be signatories to the International Organisation of Securities Commissions' (IOSCO's) new enforcement-related information-sharing agreement.

The new Enhanced Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (EMMoU) was adopted by IOSCO in 2017, and builds on the success of its existing information-sharing memorandum.

The Bahamian capital markets regulator, in a statement, said the new standard signals its commitment and ability to be at the forefront of international regulatory co-operation in combating the cross-border violations of securities laws.

"By being among the first jurisdictions to make an application to become a signatory to the EMMoU, the commission and, by extension, The Bahamas, is showing its commitment and seriousness with respect to cross-border enforcement issues," Christina Rolle, the Securities Commission's executive director, said.

"The commission continues to embrace opportunities to join with the global regulatory community in order to protect investors, and to safeguard the integrity and efficiency of markets in a manner that respects this jurisdiction's laws and regulations."

The Securities Commission's chairman, Robert Lotmore, said the regulator was "shifting the narrative" with respect to The Bahamas.

"Enforcement is a core tool for regulators. The ability to access relevant cross-border information is often vital for the investigation of criminal activity. By becoming an early adopter of the EMMoU, the commission is shifting the narrative with respect to The Bahamas' commitment to cross-border investigation and enforcement," Mr Lotmore said.

The EMMoU opens additional avenues for regulators to co-operate and enhance the outcome of investigation and enforcement activity when compared to the prevailing standard (the Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information or MMoU). Referred to as "ACFIT" powers, they require signatories' legal empowerment to:

• "Obtain and share audit work papers, communications and other information relating to the audit or review of financial statements, including with the assistance of a prosecutor, court or other authority."

• "Compel physical attendance for testimony (by being able to apply a sanction in the event of non-compliance) including with the assistance of a prosecutor, court or other authority."

• "Freeze assets if possible or, if not, advise or provide information on how to freeze assets at the request of another signatory."

• "Obtain and share existing Internet service provider (ISP) records (not including the content of communications) including with the assistance of a prosecutor, court or other authority."

• "Obtain and share existing telephone records (not including the content of communications), including with the assistance of a court, prosecutor or other authority."

IOSCO said the EMMoU was established "to keep pace with technological, societal and market developments; to bolster deterrence; and to ensure that IOSCO continues to meet its objectives".

As of October 24, IOSCO's website listed six "A1" signatories to the EMMoU: British Columbia Securities Commission; Securities and Futures Commission (Hong Kong); Ontario Securities Commission; Autorité des Marchés Financièrs (Quebec); Monetary Authority of Singapore; and the Commodity Futures Trading Commission (US).

The Securities Commission's application to be a signatory to the new standard was approved by the EMMOU verification committee in September 2018. It anticipates executing the EMMoU once all of IOSCO's procedural requirements are completed.