Release: 3866-95 For Release: October 5, 1995
Washington -- The United States Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and the Hong Kong Securities and Futures Commission (SFC) jointly announced the signing today of a Memorandum of Understanding concerning consultation and cooperation in the administration and enforcement of their respective securities and futures laws. Separate MOUs were signed between the CFTC and SFC covering futures and options, and the SEC and SFC covering securities. The MOUs enhance existing information sharing arrangements between the U.S. and Hong Kong authorities.
In addition to the MOUs, the authorities signed Declarations on cooperation and supervision of cross-border investment management and managed futures activity. The Declarations are intended to establish procedures for the authorities to assist each other in oversight of investment advisers and fund managers, investment companies, commodity trading advisors and commodity pool operators doing business in Hong Kong and the U.S. The Declarations provide for cooperative arrangements within the frameworks of the MOUs.
CFTC Chairman Mary L. Schapiro, SEC Chairman Arthur Levitt, and SFC Chairman Anthony Neoh signed the MOUs on behalf of their respective Commissions. The three Chairmen issued the following statement: "Cooperative arrangements for the sharing of enforcement and regulatory information are essential to our mandates to ensure market integrity and investor protection for all market participants. The CFTC, SEC and SFC have been close partners in the effort to develop high standards for regulation and cooperation in the international financial community. We look forward to facing tomorrow's challenges together under the framework of the MOUs and Declarations signed today."
The MOUs and Declarations follow recent changes in Hong Kong law which permit the SFC to conduct investigations on behalf of foreign securities and futures authorities. Similar authority was granted to the SEC in 1988 and the CFTC in 1992. The MOUs signed with the CFTC and SEC are the first to be signed by the SFC under its new investigative authority. The MOUs signed today "provide the fullest mutual assistance" permitted by U.S. and Hong Kong Law in response to any request concerning securities, futures, and options matters, including providing access to information in the files of the authorities, taking testimony and statements, and obtaining information and documents.
SIGN-OFF SHEET CFTC, SEC and SFC of Hong Kong sign MOU Merrill (OGC) 10/3/95 Luperello (Executive Assistant) 10/3/95 Phillips (OPA) 10/3/95