EMERGING MARKETS PROGRAMME

Transcription

1 EMERGING MARKETS PROGRAMME Strengthening Resilience of Emerging Markets Challenges to Regulatory Models of Emerging Markets in Light of the Changing Global Financial Environment 29 October 1 November 2012 Securities Commission Malaysia (SC), Kuala Lumpur Organised by A Malaysian Technical Cooperation Programme (MTCP) 1

2 Overview In the wake of the financial crisis, emerging markets defined by high growth, competition and risk are proving to be particularly alluring to investors motivated by the need for global diversification and strong returns. Open and facilitative regulatory environments that foster financial innovation and product diversity have contributed to the increasing accessibility of emerging markets as well as their rapid, returnsdriven growth. Worryingly, however, global trends over the last few years have repeatedly shown that this very same conduciveness also exposes markets to higher levels of risk. Indeed, in a globally integrated economy, product failures of a larger country can have regional and global consequences. Hence, as the importance of capital markets to their respective economies continues to grow, the regulatory function in emerging markets today has become more challenging than ever before. The overall purpose of the Emerging Markets Programme (EMP) is to provide a Regulator-to- Regulator (R2R) platform for new and senior regulators from both developing and developed markets to meet, network freely and exchange thoughts on common concerns and issues that impact their markets. The EMP 2012, themed Strengthening Resilience of Emerging Markets, takes an incisive look at how the interconnectedness of the global economy brings unintended challenges to emerging markets during times of economic turbulence and explores the feasible counter-measures available to emerging market regulators to fortify their capital markets against vulnerabilities in the system caused by the global financial crisis. Objective The programme aims to help emerging market regulators better understand the regulatory issues arising from the current global financial crisis. Participants will have an opportunity to share their own experiences and analyse the strategic responses of developed and emerging economies on key areas including efforts to strengthen regulation, supervision, enforcement and investor protection. Through this interactive learning experience, regulators will be able to derive lessons pertinent to their own jurisdictions and apply them where relevant to enhance the resilience of their respective markets. 2

3 Programme Structure 29 October 1 November 2012 Securities Commission Malaysia (SC), Kuala Lumpur The EMP 2012 is presented in two segments: Segment 1 Fundamentals of Capital Market Regulations (Optional) The first segment is an optional one-day refresher programme intended to strengthen regulators understanding of the dynamics of capital markets operations and principles of securities market regulation (including market supervision and enforcement). It will also help participants refresh their knowledge and understanding of the capital market industry as well as get up to speed with current events unfolding in global markets. Segment 2 The second segment focuses on issues related to the theme of the programme Strengthening Resilience of Emerging Markets. It is presented in three parts over the course of three days: W DAY 1 STATE OF PLAY The Global Financial Crisis and New Challenges to Emerging Markets The objective of Day 1 is to update participants on the current financial issues, Euro crisis in particular and financial scandals as well as to reflect on the responses by developed and emerging countries. W DAY 2 BUILDING RESILIENCE I Development Strategies and New Opportunities for Emerging Markets Following from Day 1, the objective of the second day is to discuss some of the strategic initiatives employed by regulators to strengthen the robustness of their markets in the face of the world financial market situation, such as broadening their markets and expanding product diversity, how they have progressed as well as challenges in market supervision and enforcement. W DAY 3 BUILDING RESILIENCE II Renewing Measures to Further Strengthen Investor Protection and Market Stability The objective of our final day is to consider the need to raise the standard of corporate governance and reflect on the importance of investor literacy in the face of market scandals, risk laxity, product complexity and mis-selling concerns. Note: Malaysian Technical Cooperation Programme (MTCP) participants are required to attend both segments. 3

4 Programme Outline ONE-DAY CITY TOUR (OPTIONAL) 9.00am 5.00pm Sightseeing tour around Kuala Lumpur and Putrajaya. Sunday 28 October 2012 FUNDAMENTALS OF CAPITAL MARKET REGULATION 9.00am 12.30pm SEGMENT 1 ONE-DAY PROGRAMME (OPTIONAL) Monday 29 October 2012 Open to all regulators and government officers, this one-day programme is designed to help participants refresh their knowledge on the capital market industry and principles of securities market regulation as well as get up to speed with current events unfolding rapidly in global financial markets today. This full-day programme is presented at a fast and highly engaging pace. It will also provide participants an opportunity to raise and discuss capital market development issues pertinent to newly emerging markets. Dynamics of Capital Market Operations and Challenges New Capital Market Products and Their Mechanics Investor Protection Scope and Focus of Regulators The Changing Global Capital Market Landscape New Developments Emerging Market Regulators Should Be Aware Of L U N C H 2.00pm 5.00pm Regulating Capital Markets IOSCO Principles Supervision of Capital Markets Philosophy and Approach Securities Market Offences Enforcement Practices and Challenges 6.00pm 7.30pm Selamat Datang Reception Cocktail 4

5 29 October 1 November 2012 Securities Commission Malaysia (SC), Kuala Lumpur STATE OF PLAY The Global Financial Crisis and New Challenges to Emerging Markets SEGMENT am 12.30pm The interconnectedness of the global economy and its financial systems means that if one nation defaults on its sovereign debt or enters into a recession it will also expose all other nations in its network. DAY 1 Tuesday 30 October 2012 The opening session will examine the unfolding state of play in the global financial markets and consider the unintended consequences to emerging markets, and will discuss the following: The Global Financial Crisis: Is There An End in Sight? Can Emerging Markets Be Firewalled? Dealing with Financial Market Scandals Regulators views: Implications of the crisis to emerging markets Experiences of developed and emerging markets L U N C H Changing Global Capital Market Landscape Responding to New Challenges 2.00pm 5.00pm This session will discuss the changing trends in capital market regulation that include: Regulation of Capital Market Shifting Paradigms Extending the Regulatory Net Dealing with Unregulated Activities 8.00pm 10.00pm EMP 2012 Dinner 5

6 BUILDING RESILIENCE I Development Strategies and New Opportunities for Emerging Markets SEGMENT am 12.30pm To remain attractive, emerging capital markets constantly seek new competitive strategies to promote growth and to expand the boundaries of their markets within a well-regulated environment. DAY 2 This session will present and discuss some of the strategic initiatives employed to broaden the markets and expand product diversity as well as some of the challenges in supervision and enforcement activities from the perspective of exchanges. Wednesday 31 October 2012 L U N C H Development Strategies and New Opportunities for Emerging Markets Supervision and Enforcement Challenges 2.00pm 5.00pm The development of regional capital market integration can facilitate domestic capital market development by providing greater liquidity, scale, and access opportunity to compete globally. Its success will need an effective governance framework, regulatory capacity and preparedness to meet any cross-border market eventuality that may quickly impact individual markets. Hence, it is important for regulators to collaborate more closely to enable effective and timely regulation of cross-border transactions through enhanced information sharing and regulatory consultation and coordination. This session will address the supervision and enforcement challenges of: Integrated Markets Sophisticated Products and Complex Transactions 6

7 29 October 1 November 2012 Securities Commission Malaysia (SC), Kuala Lumpur BUILDING RESILIENCE II Renewing Measures to Further Strengthen Investor Protection and Market Stability SEGMENT 2 DAY 3 Thursday 1 November am 12.30pm In developing quality markets that are open, fair and competitive, it is necessary to ensure that governance arrangements provide robust safeguards to protect the interests of investors. Corporate governance and investor education are significant parts of the whole governance ecosystem of checks and balances. This session will discuss the measures to reinforce check and balances that include: Strengthening Corporate Governance Raising the Bar Investment in Investor Education Why It Matters Corporate Governance Reform Challenges L U N C H Concluding EMP Discussion Facing Common Challenges 2.00pm 4.30pm A discussion on specific areas for closer cooperation between market regulators and ideas for greater R2R networking. END OF EMP

8 Securities Industry Development Corporation 3 Persiaran Bukit Kiara Bukit Kiara Kuala Lumpur Malaysia Tel : (603) Fax : (603) sidc@sidc.com.my