The US Securities and Exchange Commission and France’s Autorité des Marchés Financiers agreed to a framework for sharing information on cross-border investment businesses, the SEC said in an Oct. 20 announcement.
The arrangement facilitates US registration and supervision of asset management companies overseen by the French regulator, the SEC said. The commission announced it in its release, “SEC and AMF Announce Supervisory MOU To Enhance Cooperation for Investment Advisers and Investment Service Providers,” published Oct. 20.
The SEC said it will process new and pending registration applications from AMF-supervised asset management companies in light of the arrangement. That provision concerns French-regulated companies wishing to conduct business in the United States as investment advisers, the commission said.
The memorandum of understanding establishes a framework for consultation, cooperation and information exchange between the regulators, the SEC said. It covers investment service providers, investment advisers and investment companies operating in the United States and France under either authority’s oversight, the commission said.
The agreement addresses supervision of certain SEC-regulated investment advisers and investment companies, alongside investment service providers supervised by the AMF, the commission said. Consultation and information sharing form part of that supervisory cooperation, it said.
The SEC identified registration of AMF-supervised asset management companies as a particular application of the memorandum. The arrangement also facilitates the commission’s supervision of those companies when they seek to do business as investment advisers in the United States, it said.
SEC Chairman Paul S. Atkins linked the agreement to cooperation in securities regulation and opportunities for businesses operating across borders. He said the cooperation should support markets that combine flexibility and innovation with protection for investors worldwide.
“I thank our French colleagues for their cross-border collaboration and cooperation,” Atkins said.
AMF Chair Marie-Anne Barbat-Layani said the memorandum marked a further step in strengthening cooperation between the authorities. She linked the agreement to a shared commitment to developing capital markets while protecting investors and safeguarding the financial system’s integrity and resilience.
Both regulators tied their cooperation to investor protection, while the SEC also identified the handling of registration applications as a consequence of the arrangement. The commission said that processing will encompass applications already pending as well as new submissions from AMF-supervised asset management companies.
The framework connects the authorities through consultation and exchanges of supervisory information, the SEC said. The SEC said its scope covers businesses overseen by either regulator that operate in both countries.
