The agreement will lead to a new framework for consultation, cooperation, and the exchange of information between the regulators.
Officials of the U.S. Securities and Exchange Commission (SEC) and the French Autorité des Marchés Financiers (Financial Markets Authority) report that the regulators have entered into a memorandum of understanding (MOU) intended to ease consultation and information-sharing “in the supervision of certain investment advisers and investment companies regulated by the SEC and investment service providers supervised by the AMF.”
“The MOU establishes a comprehensive framework for consultation, cooperation, and the exchange of information between the SEC and the AMF in connection with investment service providers, investment advisers, and investment companies that operate in the U.S. and in France and are overseen by either the SEC or the AMF,” according to the announcement.
The AMF is “an independent public authority” that “ protects savings invested in financial products, ensures that investors receive clear and reliable financial information, and maintains orderly financial markets,” according to AMF officials. “The AMF develops and enforces regulatory standards, supervises market participants and market infrastructures, and takes action against misconduct and regulatory breaches. It also supports the transformation of the financial sector, particularly in the areas of innovation and sustainable finance.”
The MOU is intended to facilitate the SEC’s registration of “AMF-supervised asset management companies wishing to conduct business in the United States as investment advisers. The SEC will process new and pending registration applications by AMF-supervised asset management companies in the light of this arrangement,” officials say.
“This MOU exemplifies the necessary spirit of cooperation in securities regulation to expand opportunity and ensure our global markets thrive in ways that are flexible, innovative, and protective of investors worldwide,” says Paul S. Atkins, chairman of the SEC.
“We welcome this MOU, which marks a further step in strengthening cooperation between our two authorities and reflects our shared commitment to contribute to the development of our capital markets while safeguarding the integrity and resilience of the financial system and ensuring effective investor protection,” says Marie-Anne Barbat-Layani, chair of AMF, in a statement.
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