U.S. and Canadian Securities Regulators Discuss Closer Cooperation on Cross-Border Oversight

The Securities and Exchange Commission announced Tuesday that its senior staff met last week with counterparts at the Ontario Securities Commission (OSC) to discuss ways to further strengthen cooperation regarding their supervision of financial firms. 

At the March 28 meeting, the agencies’ staffs discussed a variety of issues, including their respective approaches to examinations, investor education initiatives, and the status of regulatory reforms in each jurisdiction. The SEC and OSC staffs also discussed additional coordination in the oversight of dually regulated entities, and they agreed to meet regularly to discuss issues of mutual significance regarding supervisory coordination and emerging risks in the cross-border market.

The meeting is part of an effort detailed in a June 2010 memorandum of understanding concerning consultation, cooperation, and the exchange of information regarding the supervision of entities regulated both in the U.S. and Canada.

“A significant lesson from the 2008 financial crisis is the importance of sharing information about firms that operate cross-border so that regulators can identify and mitigate emerging risks,” said Ethiopis Tafara, Director of the SEC’s Office of International Affairs.  “Since the 2010 agreement, SEC and OSC staff cooperation on oversight of dually regulated entities has increased substantially, including onsite examinations of broker-dealers, transfer agents, and investment advisers.”

Carlo di Florio, Director of the SEC’s Office of Compliance Inspections and Examinations, added, “The shared border between the U.S. and Canada and the similarity of our regulatory systems have resulted in a significant cross-border market for financial services. The SEC and OSC staffs are working to ensure that the regulatory oversight of the entities that operate in this market is as seamless as the transactions in which these entities engage. We look forward to continued cooperation with our OSC counterparts.”