Last week, the head of the New York State Insurance Department (“NYSID”), Superintendent Eric Dinallo, announced the signing of a memorandum of understanding (“MoU”) with Hector Sants, Chief Executive Officer of the Financial Services Authority (“FSA”) in the UK. The MoU provides for a formal exchange of information relevant to each organization’s supervisory, regulatory and examination responsibilities.
Under the MoU, either regulator may request assistance from the other in obtaining information about regulated persons and entities in their respective jurisdictions. Such assistance would include the questioning, taking testimony, and inspection of companies and persons engaged in the business of insurance.
According to Mr. Dinallo, “The increasingly global financial markets require that regulators communicate quickly and cooperate closely in order to operate effectively.” In that respect, as reported here and here, the NYSID has also recently entered into a similar MoU with the Bermuda Monetary Authority as well as with regulators in Germany and Taiwan.