SEC and UK FSA, FRC Meeting Tackles Strategies to Address Regulatory Issues
Securities and Exchange Commission Chairman Mary L. Schapiro met today UK Financial Services Authority (FSA) Chairman Adair Turner and Chief Executive of the UK Financial Reporting Council (FRC) Stephen Haddrill to address the current issues concerning regulatory.
Both the executives of SEC and FSA had an exchange of ideas over how to improve regulatory strategies to avoid future unintentional omission in over-the-counter derivatives trading, high-frequency trading, and any instances similar to the May 6 “flash crash.” They also discussed during the meeting the previous initiatives in regulating credit rating agencies and the enforcement of procedures by which information is shared between the FSA and SEC.
Schapiro and Turner made avowals on behalf of SEC and FSA, respectively, to further beef up efforts and commitments in regulating the trade of firms that do transactions in both the UK and US.
“Both the SEC and FSA are in the process of drafting vital new rules for our own markets. Meetings like this with our UK counterparts at the highest levels give the Commission a better understanding of how similar market concerns are viewed in London. Given the international nature of the recent financial crisis, this exchange of views can only improve the regulatory solutions we develop to these challenging problems,” Schapiro said.
Turner addressed the challenges facing the regulators at present. He pointed out the importance of being able to “find common ground in approaching these issues.”
“This continuing dialogue with the SEC forms a key part of this process,” he said.
In 2006, the SEC and FSA signed a memorandum on information-sharing that laid out procedures allowing the two agencies to share information about the financial health and regulatory compliance of companies that operate in both countries.
On a separate meeting with Haddrill, the SEC and FRC executives discussed similar concerns in addition to the efforts to reform the regulatory in Europe and US.