Coordination for Financial Stability: Crisis Management for Securities Regulators

Workshop: February 12 – 13, 2018ILjubljana, SloveniaICentral Banking

Since the global financial crisis, a lot of attention was brought to preserving financial stability, with the banking sector in its heart. With further widening of the financial sector, securities markets regulation and supervision need to follow and prepare for preventing undesirable events.

Crises in the securities markets can take various forms with different implications. Crisis situations for a securities regulator are very diverse. There could be a failure of a significant intermediary or a run on a large investment fund, a case of fraud, or a cyber-attack on a stock exchange. Many elements that are relevant to handle these issues are scattered across regulatory frameworks. However, they might not be generally seen as elements determining how a crisis develops and can be managed.

Most of the focus has been so far put on the banking sector. As a result, its regulators are better equipped regarding crises prevention and management strategies. On the other side, as securities regulators have had to deal with their own individual and very diverse crises in the past, they are left with little international guidance.

What will you learn?

This event was designed to bring together practitioners engaged in safeguarding stability in securities markets to discuss crisis management issues. We discussed the need for coordination to safeguard financial stability, effectively manage and resolve emerging crises, and ensure effective and strategic communication.

Participants learned on practical solutions elaborated through a mix of expert-based learning, operational experience, and systematic exchange of knowledge. We also mapped out the current state in represented countries through a pre-event survey and in-class discussion.

During the event, we addressed:

  • Failure of an intermediary
  • Liquidity crisis - run on an investment fund
  • Conduct crisis - Ponzi scheme
  • Market crisis - IT glitch, cyber-attack, market crash, etc.
  • Future risk predictions and mitigation strategies

Who was it for?

The workshop was designed for senior officials from securities regulators involved in capital market regulation and supervision.  We invited officials who interact with other economic and financial agencies and policy advisers responsible for policy planning and coordination. Experts working in ministries of finance and central banks were also encouraged to apply.

The workshop was delivered in English. Due to its interactive approach, active participation was expected throughout the event. The learning approach combined topical presentations with an interactive approach, where participants were engaged in discussions, sharing country experience, and working on a simulation exercise.

Lead Experts

Cristina Cuervo, Senior Financial Sector Expert, International Monetary Fund

Cristina Cuervo is a Senior Financial Sector Expert at the IMF, specialized in securities regulation and supervision. During her four years at the IMF, she has designed, led and backstopped multiple technical assistance projects and participated as securities expert in Financial Sector Assessment Programs. She is also engaged in various policy projects and participates in the Assessment Committee of the International Organization of Securities Commissions (IOSCO).

Before joining the IMF, she worked at the U.S. Securities and Exchange Commission (SEC), where she was seconded from the Spanish Comision Nacional del Mercado de Valores (CNMV). At the SEC, Ms. Cuervo worked in the Office of International Affairs, mostly assisting the Enforcement Division and foreign securities regulators with cross-border securities investigations and litigated actions. Prior to being seconded to the SEC, Ms. Cuervo worked at the Enforcement Division of the CNMV for six years, dealing with domestic and international enforcement matters and was the CNMV’s representative to IOSCO’s Committee on Enforcement and Cooperation and IOSCO’s Screening Group for the MMoU. She also worked for three years as an attorney at the Madrid office of the UK law firm Linklaters, where she dealt mostly with financial regulation and corporate issues.

Ilana Singer, Vice-President & Corporate Secretary, Canadian Investor Protection Fund (CIPF)

Ilana Singer is a member of the senior management team at CIPF and represents CIPF at the Insolvency Institute of Canada. Ms. Singer was previously Chief Operating Officer and Deputy Director at the Canadian Foundation for the Advancement of Investor Rights (FAIR Canada), where she represented FAIR Canada on the Investor Education Council and, on behalf of FAIR Canada, presented at and participated in meetings of the International Organization of Securities Commissions. Ms. Singer was an Adjunct Instructor for the Osgoode Hall Law School Investor Protection Seminar, and co-chaired the Canadian Bar Association’s International Business and Regulations Section. Ms. Singer is Chair of the Toronto Centre’s Security Advisory Board, and has been a Toronto Centre Program Leader since 2005. Since 2005, she has led multi-lingual programs for Toronto Centre in English and Spanish throughout Canada, South America and Asia.

Prior to joining CIPF and FAIR Canada, Ms. Singer was Senior Advisor, International Affairs at the Ontario Securities Commission (OSC), where she focused on shareholder and investor rights from a global perspective. Ms. Singer led the OSC team during the International Monetary Fund’s assessment of the securities regulatory framework in Ontario. Her extensive understanding of securities markets and regulation stems from her domestic and international work at the OSC, as well as her experience as a corporate and securities lawyer at McMillan LLP.

Robert M. Fisher, Managing Executive of the Office of Compliance Inspections and Examinations (OCIE), US Securities and Exchange Commission (SEC)

Robert M. Fisher, Ph.D. is Managing Executive of the Office of Compliance Inspections and Examinations (OCIE). In this role, Dr. Fisher oversees OCIE’s business operations and technology services, among other responsibilities.  Dr. Fisher came to the SEC in 2002 as an Economic Fellow in the Office of Economic Analysis. He was named an Assistant Director in the Office of International Affairs (OIA) in 2005, with responsibility for the SEC’s technical assistance program for emerging markets. He became OIA’s Deputy Director in 2012 and later served as the office’s Acting Director. In 2014, Dr. Fisher joined OCIE as an Associate Director within its Office of the Director. Before coming to the SEC, Dr. Fisher was a Washington, D.C.-based attorney in private practice, including stints at the law firms of Fried Frank (primarily in securities law practice), Skadden Arps (primarily in international trade practice) and Sidley & Austin (primarily in telecommunications practice). He was also a Practice Manager at the Corporate Executive Board. He clerked for Judge Stephen F. Williams of the U.S. Court of Appeals for the D.C. Circuit.

His academic experience includes serving as an Adjunct Professor of Law at the Georgetown University Law Center (where he taught Global Securities Markets), Associate Professor of Economics at the College of the Holy Cross, Visiting Fellow at Cambridge University, and Research Fellow at the Australian National University. Dr. Fisher holds a Ph.D. in Economics from Duke University (1982) and a J.D. from Harvard Law School (1991; magna cum laude).

Randee Pavalow, External Expert, International Monetary Fund

Randee Pavalow specializes in securities law and policy issues relating to exchanges, dealers, and access to capital. Since 2017 she has acted as a senior policy adviser to the Ontario government on access to capital issues, of counsel at CC Corporate Counsel on corporate securities issues, and a consultant. From 2013-2016, she held legal, regulatory and operational responsibilities at Aequitas Innovations, the parent company of: Aequitas NEO Exchange (a public stock exchange); and, Aequitas EVO Connect (a platform that focused on private market securities). From 2007 to 2012 she was responsible for both legal and operational functions at Alpha Exchange, a marketplace which achieved trading over 20% of the senior listed companies in Canada.

Prior to 2007, she held various positions at the Ontario Securities Commission beginning in 1992. She held the position of Director of Capital Markets from 2001until 2007. As Director, she was responsible for Compliance, Market Regulation, and Registrant Regulation. Randee also participated in various working groups and task forces for the International Organization of Securities Commissions (IOSCO), including chairing Standing Committee 3 on Intermediaries (2004- 2007). Prior to her tenure at the Ontario Securities Commission, she practiced law in the United States and in Canada



This learning initiative was supported by:

Slovenia's Development Cooperation International Monetary Fund Bank of Slovenia
US Securities and Exchange Commission Canadian Investor Protection Fund