The US Securities and Exchange Commission enhance cooperation with EC and Cayman islands

The representative of the Securities and Exchange Commission announced that it has established two Memorandums of understanding with the Cayman Islands Monetary Authority (CIMA) and the European Securities and Markets Authority (ESMA) as part of long-term strategy to improve the oversight of regulated entities that operate across national borders.

By the opinion of the representatives of The Commission, the signing of Memorandums will enhance taff ability to share information about such regulated entities as investment advisers, investment fund managers, broker-dealers, and credit rating agencies.

According to the Director of the SEC’s Office of International Affairs, the signing of these Memorandums helps the SEC build closer relationships with its counterparts to cooperate and consult on each other’s oversight activities. Information to share may include routine supervisory information as well as the types of information regulators need to monitor risk concentrations, identify emerging systemic risks, and better understand a globally-active regulated entity’s compliance culture. These Memorandums also help to facilitate the ability of the SEC and its counterparts to conduct on-site examinations of registered entities located abroad.

SEC gives more attention to the Cayman Islands as it is a major offshore financial center and home to large numbers of hedge funds, investment advisers and investment managers that frequently access the U.S. market. 

Expert’s opinion

«The Cayman Islands are known long ago as the center for registration of hedge funds and investment companies. In this jurisdiction there are the most optimum conditions for business. It is obvious that the signing of these Memorandums confirms once again the desire of America to supervise everything and everybody».

On the basis: www.sec.gov.

Lomakina Irina ( the director of Moscow office of Honest & Bright )