SIFMA today published a new white paper, titled “Bilateral Regulatory Cooperation – Building Dialogues for Growth and Jobs,” which explores alternative ways to strengthen bilateral regulatory cooperation between rule-makers in different jurisdictions.
“Effective regulatory cooperation between regulators in different jurisdictions is vital in both delivering financial stability and ensuring that the global financial system can make its full contribution to economic growth,” the paper states. “Cooperation must take place at the multilateral and the bilateral level. Existing bilateral mechanisms, such as the U.S./EU Forum, are insufficiently robust to help the two jurisdictions really enhance the coherence of their respective regulations.”
Until now, divergent thinking on how to materially improve bilateral cooperation has impeded accomplishing real change in how it is achieved and executed. With Brexit provoking a reexamination of the UK’s international relationships, the United States in the process of redefining some of its economic relationships, along with other catalysts. This presents an opportunity to re-examine the issue of how jurisdictions can most effectively cooperate in the interests of promoting growth and jobs.
The paper outlines how a new standard of regulatory cooperation, grounded in strong commitments by the cooperating parties as to how they will function and be governed, but without relying on formal trade agreement frameworks, and allowing a meaningful role for the private sector, could look and operate. SIFMA looks forward to discussing it with policymakers, regulators and other important stakeholders in coming months.
The full white paper, including further analysis and detail, can be found here: https://www.sifma.org/resources/submissions/bilateral-regulatory-cooperation/
