FSA forges closer co-operation with US regulator

The FSA has entered into an agreement to co-operate more closely with the US Financial Industry Regulatory Authority (FINRA).

The FSA said that a memorandum of understanding agreed between the bodies establishes a stronger framework for regulatory oversight of the world’s two largest securities firms and markets.

The agreement will facilitate the exchange of information on firms and individuals under common supervision, support collaboration on investigations and enforcement matters, and allow further sharing of regulatory techniques, including approaches to risk-based supervision of firms.

The agreement was signed by FSA managing director of supervision Jon Pain and FINRA chairman and CEO Richard Ketchum.

Pain said:“Given the linkages between our markets, it is vital that both regulators cooperate closely with each other, this MOU will enhance the supervision of firms and financial markets in both the UK and the U.S.”

Ketchum said: “To ensure consumer protection and market integrity in today’s global market, regulators must work together with key regulatory partners. Under this agreement, the FSA and FINRA will be able to share information more freely and expeditiously in support of the oversight of common firms and investigations into wrongdoing.”