SEC and BaFin sign regulatory cooperation arrangement

摘要

Purpose – The purpose of this paper is to explain a comprehensive memorandum of understanding (MOU) between the SEC and BaFin designed to facilitate their supervision of internationally active firms and their oversight of markets. Design/methodology/approach – The paper explains the scope of supervisory consultation, cooperation, and exchange of information relating to firms, related entities, and dual-regulated entities; describes procedures for on-site visits of regulated entities and dual-regulated entities; discusses the intended framework for cooperation with regard to affiliated markets; explains how requests for assistance should be executed; outlines permissible uses and procedures for requesting confidential information; and discusses the possible gathering of information under the auspices of the MOU for enforcement purposes. Findings – The paper finds that the MOU sets forth the terms and conditions for the sharing of information about regulated entities and financial groups that operate in the USA and Germany and, in view of the growing trend toward cross-border exchange affiliations, outlines a framework for cooperation in the oversight of markets in both countries. Originality/value – The paper provides a practical insight from an experienced lawyer who is an expert in German and cross-border securities regulations.