The Board of the International Organization of Securities Committees (IOSCO) approved the membership application of the Palestine Capital Market Authority (PCMA), which was accepted in the meeting that held on the 21st of February 2014 in Kuala Lumpur, Malaysia to become the 124th ordinary member and the 101st signatory to the Multilateral Memorandum of Understanding (MMOU).
The International Organization of Securities Commissions (IOSCO) is a globally acknowledged body that develops international technical standards which are considered the best practices in securities markets regulation. That high standing of IOSCO membership encouraged many securities and capital markets regulatory bodies around the world to join the IOSCO as it provides an international endorsement that the regulatory frameworks used by those bodies to regulate and monitor securities markets meet IOSCO’s international standards and requirements. The approval of the IOSCO membership and the admission to the MMoU is a lengthy process that requires immense efforts to meet the legal and technical requirements set by IOSCO and has great consequences on developing the securities regulatory frameworks in admitted countries.
The MMOU represents a common understanding among its signatories of how they should consult, cooperate, and exchange information for the purpose of regulatory enforcement regarding securities markets.
The CEO of the PCMA, Mrs. Abeer Odeh, emphasized the importance of that achievement to the Palestine Capital Market Authority and the State of Palestine together. She said “This achievement is considered to be one of the most notable achievements for our Authority as it culminates the tremendous efforts that were spent on the course of four years by Palestinian local expertise where the majority of regulatory bodies would seek assistance from international experts in completing its membership requirements. Except in the Palestinian case where the Palestine Capital Market Authority has worked on the completion of all membership requirements over the past years with the help of its technical staff and stakeholders.” Mrs. Abeer added that “The acceptance to IOSCO and especially the MMoU is not an easy deal and it required significant efforts by the PCMA to achieve this goal after it made the IOSCO membership one of its strategic goals since its establishment.”
The admission of the PCMA to the IOSCO and MMoU has positive consequences on the Palestinian securities sector and the investment climate in general since it plays a significant role in increasing the investors’ confidence especially the foreign and institutional investors in the securities listed in Palestine Exchange (PEX). In addition, the membership also serves as an international endorsement that PCMA regulates and monitors the Palestinian securities market in accordance with the IOSCO international standards and principles, which enhances the ability of Palestine Stock Exchange in attracting international investors who pay a great attention to the membership as a part of their investment decision.
