IOSCO Assistance Program Update from ADB Hasnah Omar

IOSCO Assistance Program Update from ADB Hasnah Omar Senior Financial Sector Specialist, SEFM, Member of the Community of Practice on Financial Sector Development (COP FSD) Asian Development Bank 22 October 2009

THE ADB’s INVOLVEMENT SO FAR: The Southeast Asia Department (SERD) of the ADB has provided MMo. U assistance to capital market regulators in Indonesia, Brunei Darussalem, Viet Nam, and the Philippines through country and regional technical assistance (TA) programs. The collaboration between SERD and IOSCO has been successful and helped forge better understanding between participating regulators and information sharing issues. v. Indonesia received a TA through ADB on the MMo. U Assistance Program. The work had since completed in 2008. Indonesia is now listed under Appendix B. v. Philippines received a TA through ADB on the MMo. U Assistance Program. The work has since completed. Philippines is currently listed under Appendix B of the MMo. U. v. Brunei Darussalam received TA through ADB on the MMo. U Assistance Program. The work had since completed by consultants in 2008 and Brunei planned to submit the MMo. U application. v. Viet Nam received TA through ADB on the MMo. U Assistance program. 2

SERD of ADB has also provided assistance to the following countries in the Central and West Asia: v Mongolia: ADB through its East Asia Department engaged a consultant, started the work in 2008 to assist Mongolia's Financial Regulatory Commission (FRC) to prepare the MMo. U related documents. The consultant had submitted the draft final report and was reviewed by the department and Mongolia’s FRC. v Pakistan: The Central and West Asia Department of the ADB had expressed its interest in possibly funding the MMo. U assistance in the context of its planned financial sector operations. ADB understands that the USSEC has now provided support to Pakistan. v Bangladesh: The South Asia Department of the ADB does not have any grant TA or funds available to provide the support for the MMo. U assistance at this moment. Bangladesh is under the “non-applicant’ status now. v Papua New Guinea: The Pacific Department of the ADB is not in a position to exercise this support. Papua New Guinea is under the “non-applicant” status. 3

LATEST DEVELOPMENT IN 2009 v In 2009, ADB established a Community of Practice on Financial Sector Development (COP FSD), among others, to promote development effectiveness of ADB’s wide financial sector operations and guide ADB-wide FSD operations to implement the FSD agenda strategy 2020. v Under the ADB Strategy 2020, Regional Cooperation and Integration and Financial Sector development have been identified as core areas of cooperation. v One of the identified key activities of COP FSD is to intensify support for developing member countries (DMCs) to enhance their financial regulatory and supervisory framework and capacity, to meet with international standards/best practices in partnership with international standard setters such as IOSCO. v COP FSD together with the Financial Sector Team in the Office of Regional Economic Integration (OREI) of ADB is now developing the FSD Action Plan to help guide the implementation of FSD agenda and Strategy 2020, and one of them is to further enhance the effectiveness of ADB supports to DMCs in meeting with the international standards and best practices. v COP FSD will assist the line departments of ADB in providing TA supports for IOSCO assessments/MMOUs for DMCs either as part of country program or on a stand-alone basis. v ADB will continue its partnership with the IOSCO in its support for the MMo. U and self assessment, and collaborate with IOSCO on additional funding source if further assistance is needed. v The MMo. U and self assessment assistance helps the regulators in the region and ADB identify 4 capacity regulatory gaps, structure the legislation to fill those gaps, and assess the need for building.