SEC and NFA Sign MOU to Harmonize Regulatory Coordination
SEC and NFA entered an MOU to enhance cooperation, information sharing, and coordination on emerging risks and examinations.
The SEC-NFA MOU formalizes data sharing on emerging risks, exam planning, and market conditions. Dual-registered firms should expect more aligned scrutiny and consistent inquiries across futures and securities supervisors.
Expands the scope of information flows between securities and derivatives regulators, raising exam and enforcement exposure for dual-registrants.
Action Required
Review supervisory engagement protocols and prepare for increased cross-agency information sharing during exams.
Cross-regulator coordination materially affects exam strategy and enforcement risk for broker-dealers, FCMs, and investment advisers.
Monitor SEC-NFA coordination; align exam response and disclosure practices across securities and derivatives registrations to address consistent inquiries.
“The SEC and NFA announced an MOU to enhance cooperation, coordination, and information sharing on emerging risks, examination planning, and financial markets' conditions.”