Alert July 30, 2013

SEC Announces Arrangements with EU/EEA Member State National Regulators for Cross Border Supervisory Cooperation Regarding Asset Management Industry

The SEC issued a press release announcing that it has established supervisory arrangements with financial regulators of the member states of the European Union (EU) and the European Economic Area (EEA) as part of long-term strategy to improve the oversight of certain entities in the asset management industry that operate across national borders.  Distinct from the investigatory focus of enforcement cooperation arrangements, supervisory cooperation arrangements involve mechanisms for consultation and the exchange of information related to the ongoing oversight of global firms and markets, including information designed to assist in monitoring risk concentrations, identifying emerging systemic risks, and understanding the compliance cultures of globally-active regulated entities.  The newly-established arrangements also facilitate the ability of the SEC and its counterparts to conduct on-site examinations of registered entities located outside the United States.