The Autorité des Marchés Financiers (AMF) is adopting an agenda for the next several years that includes stepping up its efforts at overseeing the over-the-counter (OTC) derivatives markets, addressing compensation-related conflicts in the insurance industry and considering environmental threats.
The AMF published a new three-year strategic plan that will guide the regulator’s work through 2020 and points to several factors that are creating new challenges for regulators, including the rise of financial technology, intensifying competition in the financial services sector, the rise of household debt levels and market globalization.
To address these issues, the AMF is planning an approach that involves: taking a leadership role in regulatory policy; stepping up its role as a local regulator by enhancing its compliance work with the investment industry and strengthening outreach to both the industry and consumers; improving consumers’ financial literacy; and investing in its own operations.
Specific plans that the AMF has outlined include bolstering its expertise in the OTC derivatives market; consulting with the insurance industry about compensation-related conflicts of interest; examining the disclosure practices of issuers about climate change and responsible investing; and launching a special project to analyze and address the risk of a major earthquake in Quebec.
“Our new three-year plan is based on a thorough analysis of our environment and financial market trends. It reflects a period of profound change in the industry, due mainly to technological innovations. In a context such as this, we must adapt our approaches and ways of doing things while continuing to implement the best regulatory practices,” says Louis Morisset, president and CEO of the AMF, in a statement
“This is an ambitious plan, as many of the initiatives will be deployed concurrently with the commitments undertaken in regard to the extensive reforms initiated by the G20 and the revision of financial sector legislation announced by the Government of Quebec,” he adds. “Above all, this is an inspiring and mobilizing plan that, combined with our values of integrity, excellence, openness and engagement, will help us achieve our objectives.”
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