German, US finance watchdogs sign cooperation accord

Date: Friday, April 27, 2007
Author: Reuters

BERLIN, April 26 (Reuters) - U.S. and German regulators on Thursday signed an agreement designed to smooth the sharing of information about financial services firms with a global presence and boost transparency.

"In this Internet age, fraudsters are able to operate without borders and no country is safe just by relying on its own regulatory enforcement network," U.S. Securities and Exchange Commission Chairman Christopher Cox said at a news conference in Berlin.

Cox said the accord went further than existing agreements as it allowed for U.S. and German authorities to share information in their day-to-day roles as financial supervisors rather than just for law enforcement purposes as previously.

He said the agreement would help regulators monitor potential risks to the financial system from the activities of hedge funds.

"We are addressed both to markets and financial institutions," he said, adding that the SEC's monitoring of prime brokerages was a key tool in assessing potential hedge-fund risk.

"The information-sharing arrangement that we have executed today will assist us in the execution of that responsibility," Cox added, referring to hedge funds.