Trade Associations Call for Transatlantic Cooperation on Regulatory Framework
According
to a new report by a transatlantic pressure group, regulators on both sides of
the Atlantic must join forces to establish a framework of inter-jurisdictional
regulatory recognition and accreditation, in order to address concerns over
extraterritoriality and protectionism. The report, entitled
“Inter-jurisdictional Regulatory Recognition: Facilitating Recovery and Streamlining
Regulation”, was released by the EU-US Coalition on Financial Regulation.
The
report cites the call in 2010 by G20 leaders for vigilance “to ensure open
capital markets and avoid financial protectionism”. Member associations of the
Coalition say that they are increasingly concerned by growing elements of
regulatory extraterritoriality and protectionism in both the EU and US
programmes for regulatory overhaul, which are increasingly inconsistent with
this G20 call for vigilance.
Reflecting widespread industry
concern, the Coalition commissioned international law firm, Clifford Chance, to produce a report on the urgent need to resume the pre-crisis dialogue
for establishing a framework of transatlantic inter-jurisdictional regulatory
accreditation and recognition.
The Coalition says it recognises
that there will be differences in the overarching legal systems, market
practices and regulatory priorities of the EU and the US, but believes that
there is a common foundation between their regulatory policies, objectives,
standards and outcomes. These are sufficient to secure a level of regulatory
inter-reliance that will help to sustain the international competitiveness of
transatlantic businesses.
Importantly, such an approach
will also reduce legal risk, compliance complexity, regulatory uncertainty and
transactional costs that will flow from what is an increasingly fragmented
regulatory approach.