SEC Chief of Staff Andrew J. Donohue addressed the "expanding intersection between U.S. securities regulation and the global securities community." He observed that the "number of investment advisers registered with the [SEC] that have their principal office and place of business outside the U.S. has increased nearly 150% over the last 13 years, while the amount of corresponding regulatory assets under management of those foreign advisers has more than quadrupled during that time to $8.7 trillion." He stated further that the amount of cross-border holdings has "grown exponentially" and urged regulators to engage in "broad international cooperation, especially as U.S. domestic-registered investment advisers are also registered with over 50 different foreign financial regulatory authorities."
Mr. Donohue emphasized that "global threats require global cooperation," and argued for greater international regulatory cooperation in order to detect and combat fraud and address cyber threats "not constrained by space or jurisdiction." Mr. Donohue noted other SEC developments including (i) facilitating capital formation and improving disclosure, (ii) producing economic analyses through the Division of Economic and Risk Analysis and other policy divisions, and (iii) the "record-setting pace" of its enforcement and examination programs.
Mr. Donohue delivered his keynote address at the InvestoRegulation Conference in London, England.
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