The Securities and Exchange Commission together with financial regulators of the member states of the European Union (EU) and the European Economic Area (EEA) have established supervisory arrangements. This comes as part of a long-term strategy to improve the oversight of certain entities in the asset management industry that operate across national borders.
The MOUs or memoranda of understanding were signed this week. Their goal is to provide a framework for “supervisory cooperation and exchange of information between SEC and the EU/EEA member state national regulators in the area of asset management.”
Some of the EU nations participating are Denmark, Germany, Greece, Hungary, Italy, the Netherlands, Poland, Spain, Sweden and the UK.
The SEC staff’s ability to share information regarding certain entities such as investment advisors and fund managers will be enhanced.
“Supervisory cooperation arrangements help the SEC and its counterparts cooperate and consult with each other regarding our oversight activities in ways that may help prevent fraud in the long term or lessen the chances of future financial crises,” said Dr. Robert Fisher, Acting Director of the SEC’s Office of International Affairs in a press release.