Securities and Exchange Commission chairman Mary Schapiro and Japan Financial Services Agency (JFSA) Commissioner Katsunori Mikuniya met in Washington, D.C., this week as part of the annual SEC-JFSA Bilateral High-level Dialogue. The purpose of the Dialogue, established in 2006, is to provide a forum whereby the senior officials of the two agencies can meet to identify and discuss issues of common concern affecting the U.S. and Japanese capital markets and promote areas of future collaboration.
In addition to the meeting between the heads of the two agencies, the Dialogue included a full day of meetings between senior staff from the SEC and the JFSA for discussions on a variety of important topics. These meetings were chaired by SEC commissioner Kathleen Casey, JFSA Commissioner Mikuniya and JFSA Vice Commissioner for International Affairs Masamichi Kono. Following the Dialogue, SEC and JFSA staff also held discussions.
Some of the areas of mutual interest discussed during the Dialogue included:
* Recent Regulatory Reforms in the U.S. and Japan
* Corporate governance and executive compensation
* Market supervision
* Accounting, auditing and disclosure
* Cooperation on cross-border market supervision and enforcement
* Issues related to the regulation of credit rating agencies, hedge funds, OTC derivatives and short selling
During their June 29 meeting, Chairman Schapiro and Commissioner Mikuniya reaffirmed their commitment to close cooperation between their agencies, particularly in the area of market supervision, to ensure market integrity in the increasingly interconnected global financial marketplace. The Dialogue also provided the opportunity for the SEC and the JFSA to discuss collaboration on the ongoing work on the multilateral front such as that currently underway in the International Organization for Securities Commissions (IOSCO).
SEC Chairman Schapiro said, "Building on our traditionally close relationship with our JFSA colleagues is essential, particularly as we consider significant reforms to our own regulatory system. In an era of global and interconnected capital markets, we cannot fully protect investors here without the help of expert regulators in other major capital markets like Japan."
JFSA Commissioner Mikuniya said, "Developments in the market over the past few years suggest the increasing need for securities regulators to cooperate globally, especially with regard to regulations on hedge funds, clearing houses, and credit rating agencies, among others. In this context, it is ever more important for the JFSA and the SEC to work together in addressing various challenges. Regular dialogues between the two regulators provide a good opportunity for candid exchange of views and useful discussions on how to achieve good regulation and supervision. I would like to thank SEC’s hospitality today and hope to continue the dialogue to further enhance cooperation between the two parties."
SEC Commissioner Casey said, "The JFSA is one of our most important partners in the ongoing discussions in IOSCO and at the Financial Stability Board in developing coherent international approaches to regulatory reform in the wake of the recent financial crisis. I am pleased by the proactive stance the JFSA has taken in various standard-setting initiatives at the IOSCO, such as Standing Committee on Credit Rating Agencies and Task Forces on Supervisory Cooperation and on Short Selling. Today’s meeting of the Dialogue provided an excellent opportunity for us to further coordinate our efforts in these important initiatives."
JFSA Vice Commissioner Kono said, "I highly appreciate this opportunity where the two regulators can meet face to face to directly confirm and share the common goals and concerns regarding a wide range of current issues and challenges. I believe such close dialogues will also help communication on a virtual basis and build foundation for our work ahead, both in a bilateral context and through activities at international bodies."
