IOSCO Recommends Setting Up "Innovation Facilitators"

In a consultation report, the IOSCO Growth and Markets Committee recommended that regulators balance their risk management approach to new technologies by setting up "innovation facilitators" to support "the understanding of market trends, assess the need for regulatory changes or adaptation, and set a strategy for the sound development of the market, with due regard to investor protection and financial stability."

The Committee recommended that:

• the relevant regulatory authorities (i) undertake a thorough analysis to ensure that their innovation facilitators are appropriate in function, scope and operation, and (ii) have adequate measures in place for cooperation and information exchanges with relevant local and foreign regulatory authorities; and
• the objectives, functions, scope of eligible entities and criteria for the application and selection of a facilitator be made public and clearly defined.

Comments on the consultation must be received by February 6, 2022.

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