FINMA and ESMA Sign Cooperation Agreement for Enhanced Regulatory Cooperation
The Swiss Financial Market Supervisory Authority (FINMA) and the European Securities and Markets Authority (ESMA) have signed a cooperation agreement to enhance regulatory cooperation in the financial sector.
This agreement will enable FINMA and ESMA to share information, cooperate on supervisory activities, and exchange information on market trends and regulatory developments. It will also enhance the effectiveness and efficiency of regulatory oversight in both regions.
The cooperation agreement aims to promote mutual understanding and simplify cross-border supervision by facilitating the exchange of information between FINMA and ESMA. This will be particularly relevant in the context of the upcoming Brexit, which will require closer cooperation and coordination among regulatory authorities.
The agreement emphasizes the importance of maintaining high regulatory standards and providing strong consumer protection. In addition, it recognizes the need for regulatory convergence, particularly in the areas of securities markets, investment management, and capital markets.
This cooperation agreement is a significant step in strengthening regulatory oversight and promoting cross-border cooperation in the financial sector. It will help to ensure that the financial markets remain safe, transparent, and efficient, while also promoting innovation and growth.
The agreement will come into effect on 1 January 2021 and will be reviewed after three years. It is expected to serve as a model for other bilateral and multilateral cooperation agreements among regulatory authorities around the world.
In conclusion, the FINMA-ESMA cooperation agreement is a positive development that will enhance cross-border regulatory cooperation and improve regulatory oversight in the financial sector. This will ultimately benefit consumers, financial institutions, and the broader economy.