SEC, Québec Autorité des marchés financiers and Ontario Securities Commission sign regulatory cooperation arrangement
Washington, D.C., Montréal and Toronto – The U.S. Securities and Exchange Commission (SEC), Québec Autorité des marchés financiers (AMF) and Ontario Securities Commission (OSC) today announced a comprehensive arrangement to facilitate their supervision of regulated entities that operate across the U.S.-Canadian border.
SEC Chairman Mary L. Schapiro, AMF President and CEO Jean St-Gelais and OSC Chair David Wilson executed a memorandum of understanding (MOU) that provides a clear mechanism for consultation, cooperation, and exchange of information among the SEC, AMF and OSC in the context of supervision. The MOU sets forth the terms and conditions for the sharing of information about regulated entities, such as broker-dealers and investment advisers, which operate in the U.S., Quebec and Ontario.
The SEC, AMF and OSC have a long history of cooperation particularly in securities enforcement matters. This MOU would extend this cooperation beyond enforcement by setting forth a framework for consultation, cooperation and information-sharing related to the day-to-day supervision and oversight of regulated entities. The supervision of regulated entities is critical to encouraging compliance with the securities laws, which in turn helps to protect investors and the securities markets generally.
The MOU was signed in Montréal on June 10, 2010, after the close of the 35th Annual Conference of the International Organization of Securities Commissions (IOSCO). It follows on the heels of the IOSCO Task Force on Supervisory Cooperation Report, which was published on 25 May 2010 and is available at: http://www.iosco.org/library/pubdocs/pdf/IOSCOPD322.pdf This link will open in a new window.
In response to the recent financial crisis, the Task Force and many other groups, including the G20, have recommended that regulators enhance the supervision of internationally-active regulated entities by working with their foreign counterparts.
This MOU is the first comprehensive supervisory MOU to be signed by the SEC since the start of the financial crisis. The SEC currently has comprehensive supervisory MOUs with the securities regulators in the United Kingdom, Germany and Australia. These MOUs are available at: http://www.sec.gov/about/offices/oia/oia_cooparrangements.shtml This link will open in a new window.
SEC Chairman Schapiro said, “Our organizations share a strong commitment to overseeing the markets and protecting investors. This agreement will help us to fulfill our roles by giving us access to needed information. I look forward to working closely with the AMF and OSC.”
AMF President and CEO St-Gelais said, “Since our markets have become so interrelated and given the impact of the recent financial crisis, this MOU is an important step in ensuring that our markets are safe and that our investors are protected by optimum cooperation between the SEC and the AMF and OSC. It is essential that entities operating across borders be effectively regulated, and this cannot be achieved without the cooperation envisioned by this MOU.”
OSC Chair Wilson said, “This MOU reflects the close working relationship between the OSC, AMF and the SEC, as well as the extent to which our market participants operate across our respective borders. It will further enhance the effectiveness of our cooperative activities which are essential for regulators to prevent financial harm and protect investors.”
Ethiopis Tafara, Director of the SEC’s Office of International Affairs, said, “This MOU builds upon the strong relationship that the SEC has with the AMF and OSC regarding securities enforcement. It expands and formalizes our information-sharing relationship for supervising those regulated entities that operate across our borders and will allow us to oversee these firms in a coordinated fashion. The SEC, AMF and OSC have a long-standing cooperative relationship, and we are pleased to enhance that relationship with this MOU.”
— 30 —
John Nester, Director
SEC Office of Public Affairs
Autorité des marchés financiers
Wendy Dey, Director
OSC Communications & Public Affairs