SEC To Host Roundtable On Mutual Recognition

by Glen Shapiro, LawAndTax-News.com, New York

28 May 2007

The US Securities and Exchange Commission on Thursday announced that it will host a roundtable discussion in June on the topic of selective mutual recognition.

Selective mutual recognition would involve the SEC permitting certain types of foreign financial intermediaries to provide services to US investors under an abbreviated registration system, provided those entities are supervised in a foreign jurisdiction under a securities regulatory regime substantially comparable (but not necessarily identical) to that in the United States.

The roundtable will explore whether selective mutual recognition would benefit US investors by providing greater cross-border access to foreign investment opportunities, while still preserving investor protection.

The roundtable will take place on June 12, 2007, and will consist of a series of panels designed to reflect the views of different constituencies, including investors, exchanges, and broker-dealers. A separate panel also will consider the issue of how the SEC can best assess regulatory comparability and convergence.

"The US capital markets are a vital part of the larger global marketplace," explained SEC Chairman Christopher Cox.

He continued:

"Innovations in technology have eliminated many barriers to cross-border access between US and foreign markets. Consequently, it is imperative that the Commission consider the implications of increased US investor demand for foreign investment opportunities."

"At the same time, we are seeing the international coalescence of a group of securities regulators who share many of the same concerns about investor protection and market efficiency that we at the SEC have — a development that I believe could greatly improve investor protection world-wide."

"This roundtable should assist the Commission in developing an appropriate regulatory response to the changing nature of the global market, in a way that allows the SEC to strengthen its investor protection mandate."

The Commission announced that it welcomes feedback regarding any of the topics to be addressed at the roundtable. The information that is submitted will become part of the public record of the roundtable.

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