Finding A Way.

Advisers and Brokers Beware: SEC Looking Beyond U.S. Borders

adviser lawyer new york cityThe Securities and Exchange Commission is currently working to expand its oversight of registered entities that operate beyond the borders of the United States. The agency recently signed two memoranda of understanding (MOUs) aimed to improve its ability to supervise brokers, advisers, investment fund managers, or investment companies that operate across national borders.

These most recent MOUs involve the Cayman Islands Monetary Authority (CIMA) and the European Securities and Markets Authority (ESMA). The SEC already has similar agreements in place with several Canadian agencies, including the Ontario, Alberta and British Columbia Securities Commissions.

In the MOUs, the parties agreed to cooperate on several levels, among others in the areas of investor protection and stability and integrity of the financial system.  The cooperation is meant to foster a strong working relationship between the parties, allowing information sharing in routine examinations and criminal investigations, as well as joint on-site inspections.

“Supervisory cooperation arrangements help the SEC build closer relationships with its counterparts to cooperate and consult on each other’s oversight activities in ways that may help prevent fraud in the long term or lessen the chances of future financial crises,” said Ethiopis Tafara, Director of the SEC’s Office of International Affairs.  Step by step, the days of regulatory arbitrage may be coming to an end.

How We Can Help Ensure Compliance

Of course, this post provides only a brief overview of the compliance issues facing advisers that conduct business overseas. Therefore, you should consult with experienced counsel.

Eckerle Law offers a highest-quality and cost-effective alternative to the traditional law firm model for a wide variety of transactional and regulatory matters serving all your business law needs. Our experienced attorneys also provide a full range of compliance services for investment advisers, offering compliance tools that are tailored to fit the ever changing regulatory landscape as well as your business needs.

If your company would like to strengthen its business practices, please contact us today so we can leverage our experience to create real-life business and legal solutions to help your business thrive.