International Regulatory Policy
May 12, 2017
The SEC has long recognized the important benefits that foreign issuers and foreign financial service providers bring to US investors and the US financial markets. Similarly, US market participants are active in, and contribute significantly to, markets outside the United States. Given the globalization of the world's capital markets, the SEC supports international efforts to raise regulatory standards and promotes cooperation among the world's securities regulators. Through such cooperation, regulators are able to gain additional insights regarding effective approaches to regulation. In addition, regulators are better able to enhance opportunities available to investors and facilitate cross-border business by limiting conflicting regulations without compromising investor protection.
OIA’s regulatory priorities include:
- advancing the SEC's interests in various international organizations and bilateral dialogues;
- engaging in international regulatory efforts intended to promote international regulatory convergence toward high quality standards and practices where possible;
- promoting the SEC's mission and protecting it from international developments that might otherwise hinder the ability of the SEC to accomplish its goals;
- advising on the development and implementation of SEC rulemakings and other initiatives with international implications;
- developing and implementing tools for enhanced cross-border supervisory cooperation; and
- identifying and discussing with foreign counterparts regulatory risks present in the US and foreign securities markets.
OIA promotes the SEC's mandate to protect investors, maintain fair, orderly and efficient markets, and promote capital formation in numerous international organizations, including the International Organization of Securities Commissions (IOSCO), the Financial Stability Board (FSB), the Council of Securities Regulators of the Americas (COSRA), and the Financial Action Task Force (FATF). Active engagement with many of these international organizations has become increasingly important after the 2007-2008 financial crisis because of the resulting change in the international financial architecture. Following the financial crisis, the G20 has taken a more active role in promoting a regulatory reform agenda and tasking the FSB to monitor implementation of G20 statements and declarations. In many instances, IOSCO will address securities-related matters under consideration by the FSB. SEC staff is thus actively involved in this work and makes every effort to fulfill the SEC's mission of protecting investors, maintaining fair, orderly and efficient markets, and promoting capital formation.
SEC staff also pursues direct engagement with foreign authorities, through official Dialogues with the Capital Markets Board of Turkey, China Securities Regulatory Commission, European Securities and Markets Authority, Japan Financial Services Agency, Korea Financial Supervisory Commission, Securities and Exchange Board of India, and the European Commission. In addition, SEC staff also holds regular discussions on current regulatory issues with the UK Financial Services Authority and the Swiss Financial Market Supervisory Authority (FINMA). These engagements enhance the SEC's ability to identify and address regulatory risks, strengthen enforcement and supervisory cooperation, and in some cases, expand on existing training and technical assistance efforts.
The principal international policy organizations and other activities through which the SEC advances its mission are described below:
- International Organization of Securities Commissions
- Financial Stability Board
- Council of Securities Regulators of the Americas
- Joint Forum
- IFRS Foundation Monitoring Board
- Monitoring Group
- Financial Action Task Force
- Organization for Economic Cooperation and Development
- Capital Markets Board of Turkey Dialogue
- China Securities Regulatory Commission Dialogue
- European Securities and Markets Authority Dialogue
- Japanese Financial Services Agency Dialogue
- Korea Financial Supervisory Commission Dialogue
- Securities and Exchange Board of India Dialogue
- United States-European Union Financial Markets Regulatory Dialogue