European and international cooperation

The financial crisis showed that it was necessary to re-organise the supervisory framework in order to anticipate efficiently any possible financial turbulence. In this context, the European System of Financial Supervision (ESFS) was created on 1 January 2011 in order to enhance the control of the financial activities in the European Union. It brings together the national supervisory authorities together in a solidly linked community network of which the CSSF is part.

The CSSF participates in each of the four entities which compose the ESFS:

• the European Systemic Risk Board (ESRB);
• the European Supervisory Authorities (ESA) (European Banking Authority (EBA), European Securities and Markets Authority (ESMA), European Insurance and Occupational Pensions Authority (EIOPA));
• the Joint Committee.

The missions of the ESFS are, among others:

• to remedy shortcomings in the financial supervision which were highlighted by the financial crisis;
• to draw up a common regulation in relation to supervision;
• to ensure that the regulation is applied by the national authorities;
• to ensure the sound functioning and the integrity of the financial markets as well as the stability of the EU financial system;
• to follow up and assess the development of the markets and to detect the trends, the possible risks and the vulnerabilities at the microprudential level.

The Basel Committee on Banking Supervision is a committee of the Bank for International Settlements. The CSSF takes also part in different working groups set up by the Basel Committee.

The International Organization of Securities Commissions (IOSCO) promotes co-operation between supervisory authorities of securities and futures markets. The CSSF takes also part in different working groups created under the aegis of IOSCO.

The Institut francophone de la régulation financière (Francophone institute for financial regulation, IFREFI) gathers the financial market regulatory authorities of fifteen French-speaking countries. Its purpose is to further exchanges, develop studies and exchange information in relation to the financial markets.

The Financial Action Task Force is an inter-governmental body. Its objectives are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. The CSSF takes also part in different FATF working groups.

The Wolfsberg Group is an association with the purpose of developing financial industry standards and products relating to know-your-customer and anti-money laundering and counter-terrorist financing.

The Committee was established by the European Commission. It gives its opinion proposals of the European Commission to adopt International Accounting Standards (IAS/IFRS).

The aim of the Committee of European Auditing Oversight Bodies is to ensure effective coordination of public oversight systems of statutory auditors and audit firms within the European Union.

The CSSF cooperates with the IMF whose primary purpose is to ensure the stability of the international monetary system.

Recognised as the global standard setter for the securities sector, the International Organization of Securities Commissions (IOSCO) is an international body made up of the world’s securities regulators. IOSCO develops, implements and promotes adherence to internationally recognised standards for securities regulation. It works intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda. The IOSCO Investor Education Gateway provides information on the on-line investor education activities of some IOSCO members, as well as IOSCO publications and presentations regarding investor education.

Awareness of the importance of financial education is gaining momentum among policy makers in economies the world over. The OECD and its International Network on Financial Education (INFE) provide a unique policy forum for governments to exchange views and experiences on this issue.

The International Financial Consumer Protection Organisation (FinCoNet) is an international organisation of supervisory authorities which have responsibility for financial consumer protection. FinCoNet promotes sound market conduct and strong consumer protection through efficient and effective financial market conduct supervision.

Dedicated to increasing the economic citizenship of children and youth, Child and Youth Finance International (CYFI) connects the world’s largest network of organisations within the field of Child and Youth Finance.