EU and Asia-Pacific regulators meet in KL to strengthen cross-border cooperation and regulation

31 October 2018 | Kuala Lumpur

Regulators from the European Commission Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA), European Securities and Markets Authority (ESMA) and Asian regulators participating in the International Organisation of Securities Commissions (IOSCO) Asia-Pacific Regional Committee met in Kuala Lumpur at the EU-Asia Pacific Forum on Financial Regulation (Forum) today to discuss regulatory developments in the two regions, including cross-border implications of EU regulations.

On its third edition, the Forum was held back-to-back with the IOSCO Asia-Pacific Regional Committee meeting, hosted by the Securities Commission Malaysia (SC Malaysia) between 29-30 October 2018.

The discussion covered developments relating to Brexit as well as initiatives by both Europe’s Capital Markets Union and the ASEAN Capital Markets Forum in promoting greater regional integration and connectivity. Delegates also shared views on a range of topics including sustainable finance, developments in Fintech with particular attention to crypto-assets, cross-border implementation of EU regulations including Benchmarks Regulation, the revised Markets in Financial Instruments Directive (MiFID II) and the European Market Infrastructure Regulation (EMIR).

The EU delegation was represented by the Director for Financial Markets, DG FISMA, European Commission, Ugo Bassi and Steven Maijoor, Chair of the European Securities and Markets Authority (ESMA). Senior regulators from 16 jurisdictions within the Asia-Pacific region including Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Singapore and Thailand attended.

Olivier Guersent, Director General of DG FISMA, European Commission, in his opening remarks via video recording said: “The Asia-Pacific region is going to have the fastest growth in the world in the next years. Our mutual interests can only increase, and this makes the EU-Asia Pacific Forum a crucial space for mutual communication. We believe that the right conditions are in place for a fruitful and long-lasting cooperation between European and Asia-Pacific authorities, and good integration between markets: a shared vision for growth, joint work towards compatibility of rules, and a multi-lateral platform that complements the work of the major global standard setting bodies by allowing us to meet, explain, understand each other and build trust. This has never been more important at global level, and well beyond financial markets.”

Tan Sri Ranjit Ajit Singh, Vice Chair of the Board of IOSCO and Chairman of SC Malaysia said, “The EU continues to be an important dialogue partner for the Asia Pacific Regional Committee. The Forum is an important platform to ensure that efforts to spur the growth of domestic capital markets in the region consider developments taking place in Europe, including the impact of regulations on firms operating in the Asia-Pacific.”

Steven Maijoor, Chair of ESMA, said: “ESMA has been actively participating in the EU-Asia Pacific Forum on an annual basis and I am glad to be in Kuala Lumpur to meet my colleagues from the Asia-Pacific region. Indeed, I believe that regular exchanges between regulators from different jurisdictions are essential to support global capital markets, enhance investor protection and promote financial stability.”

Jun Mizuguchi, Chair of IOSCO APRC and Deputy Commissioner of the Japan Financial Services Agency said, “APRC member jurisdictions very much welcome and support the third Forum. This unique Forum prompts to enhance constructive dialogue between relevant regulators both from the EU and the Asia-Pacific region on a number of key issues related to cross-border cooperation and regulation, including crypto-assets and sustainable finance.”

SECURITIES COMMISSION MALAYSIA