SEC sets common ground in Europe

The SEC and the Committee of European Securities Regulators (CESR) held a meeting yesterday in Paris to discuss the status of regulatory reform efforts in the US and the European Union (EU). The meeting involved chairmen of 29 CESR member regulators and the SEC, the regulator says.

With the number of global financial firms operating and emerging in the US and Europe, there has been a dramatic increase in regulation on both sides of the Atlantic. Representatives from the two groups discussed ways in which these new rules can best be implemented, and examined issues of continuity and comparison between different sets of rules in order to avoid potential negative implications or inefficiencies in both markets. Additionally, they took into consideration their immediate level of effectiveness of reducing regulatory arbitrage and conflicting of laws between both parties, the SEC says. 

‘We need to ensure our regulatory initiatives are properly coordinated,’ says Mary Schapiro, SEC chairman. ‘Our ongoing dialogue with CESR is particularly important as we seek to implement our respective legislative agendas while minimizing the burden for market participants that operate across borders.’

Amid the recent economic turmoil, the regulators felt the urge to design new and updated rules to address other regulatory concerns in these countries. Some of the topics that were discussed include the regulation of over-the counter derivatives, overseeing credit rating agencies and managers of hedge and private equity funds. Also mentioned were the emerging issues around systemic risk and the integration of IFRS and US GAAP.

Prior to this meeting, on Monday another conference was held between the SEC, the UK’s Financial Services Authority and the UK’s Financial Reporting Council in London to address reform of rules governing issuer disclosure, high-frequency trading and investor access to corporate proxies.

In an attempt to further strengthen their collaborative efforts with the EU’s national regulators, the SEC met separately with representatives involved in the EU’s legislative process including the president of Belgium's Banking Finance and Insurance Commission.