The Joint Declaration on Co-operation and Supervision of Cross-Border Investment Management Activity is aimed at improving supervision of development of new financial products in this area.
As the first formal agreement between the Investment Management Regulatory Organisation and US Securities and Exchange Commission, the declaration will also be establishing procedures which one authority will follow when arranging on-site inspections in the jurisdiction of the other.
It is aimed at streamlining and improving supervision of cross-border fund-management business.The two authorities will now provide copies of reports from firms authorised in both jurisdictions, or authorised firms that have an affiliate authorised in the other jurisdiction to each other.
This will give Imro a clearer picture of the activities of its authorised firms' operations.
At present, 115 companies with US operations are regulated by Imro and the SEC. The companies have a total of £169bn under management.
Imro's chairman, Charles Nunneley, said he expected the joint venture to be the basis on which future international co-operation will take place in this area in a way that is efficient and cost-effective. "This provides an effective mechanism for sharing information at this level," he said.The need for such an agreement follows the dramatic increase in cross-border investment management activity.Reuse content