Trans-Atlantic Coalition Calls for Global Securities Regulations

The EU-US Coalition on FinancialrnRegulation is calling on policy makers in the US and the European Union (EU) tornresume discussions of a framework to regulate the trade of securities,rnderivatives, and other financial instruments. rn </p

The Coalition was established in 2005 tornencourage governments and regulatory authorities in Europe and the U.S. to movernforward on inter-jurisdictional regulatory recognition and exemptive relief onrnthe basis of regulatory compatibility, and where possible to establishrnappropriate mutual rules.  The overallrnobjective is to facilitate customer choice and market access to financialrnservices on a global basis.</p

The Coalition commissioned the international law firm Clifford Chance LLP tornproduce a report on the need to resume a dialogue to establish a framework ofrntransatlantic inter-jurisdictional regulatory accreditation and recognition. Theserndiscussions were abandoned when the financial crisis hit in 2008. </p

The new report, Inter-jurisdictionalrnRegulatory Recognition: Facilitating Recovery and Streamlining Regulation, citesrna call by the G20 in 2010 for vigilance “to ensure open capital markets andrnavoid financial protectionism”.  A pressrnrelease from the eleven Association members* of the Coalition states they havernbecome increasingly concerned by growing elements of regulatoryrnextraterritoriality and protectionism in both the EU and US programs forrnregulatory overhaul, which are increasingly inconsistent with this G20 call forrnvigilance.</p

The report states that while it recognizes there are differences in thernoverarching legal systems and in the market practices and regulatory prioritiesrnof the EU and the US, there is a common foundation between their regulatoryrnpolicies, objectives, standards and outcomes. These are sufficient to secure arnlevel of regulatory inter-reliance that will help to sustain the internationalrncompetitiveness of transatlantic businesses. rn”Importantly, such an approach will also reduce legal risk, compliancerncomplexity, regulatory uncertainty and transactional costs that will flow fromrnwhat is an increasingly fragmented regulatory approach.”</p

The report states that International Organization of Securities Commissions’rn(IOSCO’s) “38 Objectives & Principles of Securities Regulation” issued inrn1998 and updated in 2010 provide an internationally-accepted foundation ofrnregulatory adequacy. The Coalition recognizes, however, that regulatoryrninterdependence will require a greater degree of in-depth analysis and due diligence,rnif it is to be credible and effective but it does provide a crediblernstarting-point for building international regulatory accreditation.</p

*American Bankers Association Securities Association,rnAssociation of Financial Markets in Europe, Bankers’ Association for Financernand Trade, British Bankers’ Association, Futures Industry Association, Futuresrnand Options Association, International Capital Market Association, InvestmentrnIndustry Association of Canada, International Swaps and Derivatives Associationrn<br /Securities Industry and Financial Markets Association, Swiss Bankers Associationrn(SBA) 

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