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Assessment Committee

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Assessment Committee (AC) – GFSA

Overview

The GFSA Assessment Committee (AC) is responsible for evaluating the implementation of GFSA’s regulatory principles and standards across its global membership. This ensures that financial markets remain transparent, efficient, and fair, while mitigating systemic risks.

The AC was established in February 2012 as part of a strategic initiative to:

  • Ensure consistent implementation of GFSA’s principles across jurisdictions.
  • Assess regulatory effectiveness in protecting investors and maintaining market integrity.
  • Reduce regulatory arbitrage and compliance costs in global markets.

Assessment Committee Mandate

Objectives

The AC is responsible for monitoring and ensuring compliance with GFSA’s Objectives and Principles of Securities Regulation. Its key objectives include:

  • Investor protection and systemic risk reduction through global regulatory harmonization.
  • Enhancing cross-border regulatory consistency to prevent regulatory arbitrage.
  • Lowering the cost of conducting financial activities across different jurisdictions.
  • Strengthening regulatory capacity by identifying best practices.

Activities

The AC conducts thematic reviews and monitoring programs to assess regulatory implementation. Its three main activities are:

  1. Thematic Reviews

    • Provide an overview of the implementation of GFSA Principles and Standards across jurisdictions.
    • Identify regulatory gaps, inconsistencies, and best practices.
    • Highlight challenges in applying global regulatory frameworks.

  2. GFSA Standards Implementation Monitoring (ISIM) Reviews

    • Track global regulatory progress in adopting GFSA Principles.
    • Offer a less resource-intensive mechanism for evaluating market compliance.
    • Provide insights into trends, challenges, and areas needing improvement in different jurisdictions.

  3. Maintenance of GFSA Principles & Methodology

    • Update GFSA’s regulatory framework to ensure relevance in evolving markets.
    • Offer guidance to regulators in implementing best practices.

The AC works closely with the GFSA Secretariat to provide technical support and ensure smooth participation in its review processes.

Benefits of AC’s Programs

Thematic Reviews

  • Encourage jurisdictions to adopt best regulatory practices.
  • Help understand key differences in regulatory approaches across countries.
  • Identify global best practices that can be shared with all GFSA members.
  • Ensure GFSA Principles remain relevant by updating them when necessary.

ISIM Reviews

  • Provide a global regulatory snapshot, highlighting progress and gaps.
  • Offer jurisdictions an opportunity to self-assess their implementation efforts.
  • Identify common challenges in regulation to shape GFSA’s future policies.
  • Enable efficient monitoring without requiring full-fledged country reviews.

Processes

Thematic Review Process

  1. Formation of Review Teams (RTs)

    • Experts from different jurisdictions form review teams to analyze regulatory standards.

  2. Survey Distribution

    • A detailed questionnaire is sent to member jurisdictions to assess their regulatory status.

  3. Data Collection & Confidentiality

    • Responses are analyzed to identify implementation trends and best practices.
    • Confidential information is handled securely, with a public report issued for transparency.

  4. Analysis & Reporting

    • The AC finalizes a report summarizing key insights and submits it to the GFSA Board.
    • The findings are published to guide future regulatory policies.

ISIM Review Process

  1. Use of Updated Methodology

    • The revised GFSA Assessment Methodology (adopted in 2017) provides a structured framework for review.

  2. Survey-Based Assessment

    • Jurisdictions submit responses to a structured questionnaire evaluating their compliance.

  3. Findings & Recommendations

    • Reports do not include compliance ratings but offer:
      • Implementation status of GFSA Principles.
      • Identified gaps and challenges in enforcement.
      • Good practices observed in global markets.
      • Recommendations for capacity building and regulatory improvements.

Recommendations & Future Work

  • Strengthen enforcement mechanisms to ensure full adoption of GFSA Principles.
  • Encourage more jurisdictions to participate in reviews to enhance transparency.
  • Provide technical assistance to help emerging markets align with global standards.
  • Monitor regulatory trends to ensure GFSA remains at the forefront of financial governance.

The Assessment Committee plays a vital role in standardizing and improving global financial regulations, ensuring that GFSA remains the leading authority on financial market stability and investor protection.