ARTICLE
29 May 2019

SIFMA Offers New Approach To Improve Cross-Border Regulatory Cooperation

CW
Cadwalader, Wickersham & Taft LLP

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SIFMA recommended a new approach to strengthen cross-border cooperation among regulators to "enhance the coherence of their respective regulations" and "enshrine[] cooperation within legally binding trade agreements."
United States Finance and Banking

SIFMA recommended a new approach to strengthen cross-border cooperation among regulators to "enhance the coherence of their respective regulations" and "enshrine[] cooperation within legally binding trade agreements." In a paper titled "Bilateral Regulatory Cooperation," SIFMA described current financial regulatory cooperation and offered "a middle way" for future endeavors.

SIFMA explained that typical cooperation arrangements have notable weaknesses that include:

  • the lack of predictability or robust processes due to the "ad-hoc nature" of current mechanisms;
  • a lack of transparency in existing dialogues;
  • minimal consultation with the financial services industry; and
  • delayed responses to emerging technologies and developments due to a lack of "forward planning."

SIFMA proposed a model that would address these shortcomings, and urged regulators to incorporate best practice mechanisms that include:

  • creating clear timetables;
  • issuing clear goals and objectives;
  • ensuring transparency;
  • consulting with the industry and other stakeholders; and
  • a continuous process of following up.

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