SEC and Financial Services Authority Hold Fifth Meeting of the SEC-FSA Strategic Dialogue

February 1, 2010

SEC Chairman Mary Schapiro met with senior Financial Services Authority (FSA) officials in the most recent phase of the SEC-FSA Strategic Dialogue. The purpose of the Dialogue, which was established in 2006, is to engage at the senior levels of the two agencies on current matters affecting the US and UK capital markets and areas of future collaboration.

This was the fifth meeting of the Dialogue. Some of the areas of mutual interest discussed were:

  • Making Corporate governance and executive compensation;
  • Regulation of hedge funds and investment advisors and the protection of customer assets;
  • Disclosure regimes around client asset risks;
  • Market infrastructure, particularly relating to central counterparties for OTC derivatives;
  • Market supervision;
  • Cooperation on cross-border supervision.

The SEC and FSA officials agreed that, given the linkages between the US and UK markets, enhanced supervisory cooperation is critical to market integrity.  They stated that cooperative efforts between the staffs of the two agencies are increasing in areas such as:

  • oversight of credit rating agencies,
  • hedge fund advisers and
  • the clearing of OTC derivatives.

The SEC and the FSA also discussed corporate governance, particularly board risk oversight, and executive compensation. Consistent with the emerging international consensus, both agencies' current efforts seek to address, among other things, the intrinsic links between the types and degree of risks regulated entities/registrants assume and their corporate governance and compensation policies.

To facilitate this expanding cooperation, the two agencies plan to review the existing Memorandum of Understanding Concerning Consultation, Cooperation and the Exchange of Information Related to the Supervision of Financial Services Firms and Market Oversight, entered into by the SEC and the FSA in 2006. This memorandum of understanding is designed to promote the coordination of robust and sound supervision of cross-border financial institutions and markets.

Click to access a release about the meeting.


Exchange-Traded Funds (ETFs), Investment Advisers, Miscellaneous, Mutual Funds