To facilitate mutual assistance in the supervision and oversight of cross-border regulated entities, the Securities and Futures Commission (SFC) and the United Stated Securities and Exchange Commission (SEC) have recently entered into a memorandum of understanding (MoU). The MoU is a response to the growing globalisation of financial markets and the increased cross-border activities of regulated entities in the United States and Hong Kong.
Through the MoU, the SFC and SEC have expressed their willingness to consult, cooperate and exchange information with each other in the interest of fulfilling their respective regulatory functions, especially in protecting investors’ interests, encouraging compliance by regulated entities, maintaining confidence in capital and financial markets, and reducing systemic risk. The MoU covers exchanges and other trading venues, market intermediaries, investment funds or companies, clearing agencies and credit rating agencies.
A copy of the MoU can be found here.