SEC and Hong Kong SFC Establish Supervisory Cooperation Arrangement

The SEC established a comprehensive supervisory cooperation arrangement with the Hong Kong Securities and Futures Commission ("SFC"). The new arrangement is part of the SEC's "long-term strategy to enhance the oversight of regulated entities" engaged in cross-border activities. The supervisory cooperation arrangements provide "information regulators need to monitor risk concentrations, identify emerging risks, and better understand a globally active regulated entity’s compliance culture."

The new comprehensive arrangement expands upon a 1995 relationship that was limited to investment management activities. According to the SEC, the agreement will improve the ability of both agencies to share information about investment advisers, broker-dealers, securities exchanges, market infrastructure providers, and credit rating agencies that operate in the U.S. and Hong Kong.