US SEC in ‘supervisory cooperation arrangement’ with HK’s SFC

US SEC in ‘supervisory cooperation arrangement’ with HK’s SFC

The US Securities & Exchange Commission and Hong Kong Securities & Futures Commission said on Thursday that they had agreed, in the SFC’s words, a “memorandum of understanding” that would provide for  “consultation, cooperation and exchange of information related to the supervision and oversight of regulated entities that operate on a cross-border basis in Hong Kong and the United States of America”.

The SEC referred to the agreement as a “comprehensive arrangement” that was “part of the SEC’s long-term strategy to enhance the oversight of regulated entities that operate across national borders”.

It noted that the new arrangement expanded an existing agreement that dated from 1995, which had been  limited to investment management activities. This agreement, the SEC noted, would “augment the SEC’s and the SFC’s ability to share information about [such] regulated entities…[as] investment advisers, broker-dealers, securities exchanges, market infrastructure providers, and credit rating agencies”.

The SFC published the nine-page MoU on its website, where it may be read and downloaded by clicking here.  It shows it was signed on 18 January by SEC chair Mary Jo White, who is leaving her post alongside departing president Barack Obama, after almost four years as head of the US regulatory body, and SFC chief executive Ashley Alder.