21/09/2010 Author: Shannon Hawthorne

FSA and Finra sign oversight agreement

The UK Financial Services Authority (FSA) and the US Financial Industry Regulatory Authority (Finra) have entered into a Memorandum of Understanding (MOU), designed to enhance their ability to supervise the world’s largest securities firms and markets. 

The agreement, which is hoped will support more robust cooperation between the bodies, was signed by Jon Pain, FSA’s managing director of supervision and Richard Ketchum, Finra’s chairman and CEO. 

The MOU is expected to “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,” according to an announcement made yesterday. 

 “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 US,” said Pain. 

 “To ensure consumer protection and market integrity in today’s global market, regulators must work together with key regulatory partners,” added Ketchum. “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.”