The latest statement of protocols updates an agreement from 2014 and outlines how the two organisations will continue working together. Under the arrangements, senior representatives of the Foundation and ESMA will meet periodically to share perspectives on strategic matters, further the development and consistent application of IFRS standards, and discuss matters of mutual interest, including regulatory developments, and the status of each organisation’s projects.

ESMA staff will be invited to participate in IASB’s working groups, as appropriate, and will submit comment letters which will include enforcers’ views with a focus on the enforceability of the proposed standard or amendment. As and when required, ESMA will coordinates the fatal-flaw review by European enforcers of the board’s due process documents before their publication

In addition, the protocols outline how the two bodies will communicate about IFRS initiatives and standards-setting activity, with a particular focus on facilitating the early identification of any implementation issues. 

Steven Maijoor, chair of ESMA, said: ‘I am pleased that ESMA and the IFRS Foundation have committed to further strengthening their cooperation together. Ensuring the consistency of financial information and improving the quality of the information provided to investors is fundamental in allowing capital markets to flourish. I look forward to continuing to work with the IFRS Foundation towards achieving this common goal.’

Michel Prada, chairman of the IFRS Foundation trustees, said: ‘ESMA and the IFRS Foundation have a shared interest in promoting the reporting of financial information that is useful to investors. We will work together to share information that is relevant for the board’s standard-setting and support the regulator in its role to promote consistent application of IFRS standards.’

The ESMA/IFRS Foundation Statement of Protocols is available here.