SEC, FSA Hold Strategic Dialogue Meeting

Jack Humphrey, Regulatory journalist
October 14, 2011 /

Securities and Exchange Commission Chairman Mary Schapiro and senior SEC staff have met with the UK Financial Services Authority’s (FSA) chief executive Hector Sants and its managing director of the conduct business unit Martin Wheatley as part of the regular, ongoing SEC-FSA Strategic Dialogue to discuss regulatory approaches to current issues.

The last FSA-SEC Strategic Dialogue meeting took place on 15 November 2010.

The purpose of the Dialogue is for the two agencies to engage at senior levels on current matters affecting the UK and US capital markets and areas of future collaboration.

During the SEC-FSA dialogue, the agencies exchanged views on a number of topics including issues relating to over-the-counter derivatives, technology-driven trading strategies, market surveillance, and short selling, as well as the agencies’ respective participation in the Financial Stability Board and the International Organization of Securities Commissions.

In addition, the agencies discussed the impact of current regulatory reform efforts being undertaken in both jurisdictions.

Chairman Schapiro said, “The ongoing dialogue between the SEC and the UK FSA demonstrates both agencies’ commitment to aligning interests with the goal of achieving regulatory consistency.

“As Europe and the U.S. continue to enhance regulation in the wake of the financial crisis, working with all of our counterparts is essential to help prevent regulatory arbitrage, especially in the areas involving over-the-counter derivatives and market structure.”

FSA CEO Sants said, “Close cooperation between the FSA and the SEC is important as we seek to meet the G20 commitment to enhance transparency, mitigate systemic risk, and protect against market abuse. The strategic dialogue is key to this and gives the two agencies the opportunity to find common ground, build on areas of mutual interest, and identify potential regulatory gaps.”

The SEC and FSA have long had a close relationship. The SEC and the FSA’s predecessor agency first signed enforcement information-sharing arrangements in 1986.

More recently in 2006, the SEC and FSA executed a supervisory information-sharing memorandum of understanding in which the two regulators laid out how they would share information relating to the financial health and regulatory compliance of regulated entities operating in both countries.

The meeting provided an opportunity for the SEC and the FSA to restate their commitment to working together and continue discussions in the areas of common regulatory interest including cross-border enforcement cases, the oversight of dually-regulated firms, and the global regulatory agenda.


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