02 April 2008

EU-US Coalition Report on Financial Regulation

The EU-US Coalition on Financial Regulation issued its second report on cross-border regulation, which argues strongly for the early adoption of a more open, inclusive and effectively regulated transatlantic marketplace. “This Report sets out a roadmap for establishing a more coherently regulated and open transatlantic marketplace, but without any loss in regulatory standards or efficiency”, Anthony Belchambers, Chief Executive of the FOA and founder of the Coalition said.

The Coalition believes its report is broadly consistent with the aims and objectives behind the series of actions announced by the Securities and Exchange Commission (SEC) on 24 March 2008, but this is subject to the conditions for recognition and the detail of the proposed reforms to Rule 15a-6.

The Report emphasises the need for urgent regulatory action to meet growing customer and financial service provider needs for more open transatlantic rights of access to non- domestic markets, products and services. It proposes the adoption of three “gateways” to establishing greater international regulatory coherence, namely, exemptive relief, regulatory recognition and “targeted” rules’ convergence.

The report sets out several prioritised areas of regulation where financial service providers and their counterparties and customers would benefit from greater harmonisation, and proposes that the basic starting point for measuring regulatory quality and establishing an internationally acceptable basis for recognition are the IOSCO “Objectives and Principles of Securities Regulation”.

The EU-US Coalition on Financial regulation comprises eleven European and North American industry associations, namely:

ABA Securities Association (ABASA), Bankers' Association for Finance and Trade (BAFT), British Bankers' Association (BBA), Futures Industry Association (FIA), Futures and Options Association (FOA), International Capital Market Association (ICMA), Investment Industry Association of Canada (IIAC), International Swaps and Derivatives Association (ISDA), London Investment Banking Association (LIBA), Securities Industry and Financial Markets Association (SIFMA), Swiss Bankers Association (SBA)

Press release

Report

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