The FSA has announced that its Chief Executive, Hector Sants, and Mary Shapiro, chairman of the US Securities and Exchange Commission (SEC), will explore approaches to reporting and other regulatory requirements for key market participants such as hedge funds and their advisers.
In their recent meeting, the fourth of the SEC-FSA Strategic Dialogue, they agreed to establish a common set of data to obtain from hedge funds and their advisers in order to help them identify risks. Their meeting also covered over-the-counter derivatives markets and central clearing; accounting issues; regulatory reform; credit rating agency oversight; short selling; and corporate governance and compensation practices.
FSA chief executive, Hector Sants said:
"The global crisis has underlined how intertwined financial markets and institutions are and regulators around the world have to work together to ensure appropriate oversight. We are all working alongside the Financial Stability Board and other international regulatory committees to drive forward global financial reforms. The strategic dialogue with the SEC is a valuable component of the discussions around these reforms, particularly in areas of joint interest and in identifying potential regulatory gaps.”
SEC chairman, Mary Schapiro, said:
"As the regulators of two of the world's major market centres, the SEC and the FSA have a strong interest in collaborating with respect to OTC markets and hedge funds, credit rating agencies and other market participants with cross-border operations. Only through strong cooperation can we achieve coherent oversight of global actors and limit opportunities for playing the regulatory seams. I look forward to continuing this successful dialogue between the SEC and FSA."