SIFMA Offers New Approach to Improve Cross-Border Regulatory Cooperation

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.