Trinidad and Tobago, through the Trinidad and Tobago Securities and Exchange Commission (TTSEC), has become a Full Signatory to the International Organization of Securities Commission’s Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (MMoU). The decision was made on Wednesday 19 June, 2013, at a meeting of the Board of the International Organization of Securities Commissions (IOSCO) in Montréal, Canada. Trinidad and Tobago therefore joins a select group of 95 MMoU signatories.
The MMoU is a tool used by securities regulators to help ensure effective regulation and to preserve and strengthen the international securities market. It represents a common understanding amongst its signatories about how they will consult, cooperate, and exchange information for securities regulatory enforcement purposes. This agreement provides a mechanism through which signatories share with each other essential investigative material, such as beneficial ownership information, and securities and derivatives transaction records such as bank and brokerage information. According to the IOSCO, “the increase in the number of signatories over the last decade has led to a sharp upsurge in cross-border cooperation, enabling regulators to investigate a growing number of insider traders, fraudsters and other offenders.”
By becoming a Full Signatory, Trinidad and Tobago will benefit from:
o Sharing information with foreign regulators;
o An enhanced international reputation and credibility; and
o Increased investor confidence in its market for securities.
The passage of the Securities Act 2012 in December 2012 greatly assisted Trinidad and Tobago’s appli-cation to become a Full Signatory. The Act has, at its core, the promotion of regulatory co-operation, enhancement of disclosure obligations, shifting the focus from issuer to activity and investor, strength-ening of the regulatory framework, fostering transparency, an increase of the TTSEC’s enforcement powers and greater emphasis on prosecuting market misconduct and manipulation.
The TTSEC, as the regulator of the securities industry in Trinidad and Tobago, remains committed to the promotion of investor confidence, fairness and the orderly growth of the local capital market.
By becoming a Full Signatory, Trinidad and Tobago, through the Commission, has joined other Signatories who have pledged their commitment to eradicate potential safe havens for criminal activities.
New signatories to the MMoU also contribute to strengthening IOSCO´s international enforcement network.