MEMORANDUM OF UNDERSTANDING SIGNED BY SEC, CFTC, BANK OF ENGLAND AND FINANCIAL SERVICES AUTHORITY
No fraud occurred; the SEC, CFTC, Bank of England, and Financial Services Authority signed a cooperative Memorandum of Understanding on October 27, 1997, to enhance cross-border regulatory information sharing and oversight of globally active financial firms.
On October 27, 1997, the U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Bank of England, and Financial Services Authority signed a landmark Memorandum of Understanding to formalize regulatory cooperation between U.S. and U.K. financial supervisors. The MOU established procedures for sharing supervisory information—including details on internal controls and risk management—of internationally active firms operating across securities, futures, and banking markets. No fraud, charges, or financial penalties were involved; the agreement was a procedural framework to strengthen oversight amid growing global financial integration and the transition of banking supervision to the FSA.
On October 27, 1997, the U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), Bank of England, and the newly formed Financial Services Authority (FSA) signed a historic Memorandum of Understanding to formalize international regulatory cooperation. The MOU created a structured framework for sharing supervisory information, including data on internal controls and risk management systems, of financial firms operating across borders and sectors. This collaboration was designed to address the challenges posed by global financial conglomerates and the blurring lines between banking, securities, and futures markets. The agreement ensured continuity of oversight as banking supervision transitioned from the Bank of England to the FSA. SEC Chairman Arthur Levitt, CFTC Commissioner Barbara Holum, Bank of England Governor Eddie George, and FSA Chairman Howard Davies all praised the MOU as a milestone in regulatory collaboration. They emphasized that no single regulator could effectively supervise globally active firms alone, making cross-border cooperation essential. The MOU was purely procedural and cooperative, with no allegations of fraud, misconduct, or financial penalties involved. It marked a foundational step toward modern, integrated financial supervision in an increasingly interconnected global market.
Extracted insights
- person arthur levitt
- person barbara holum
- agency cftc commissioner
- agency Commodity Futures Trading Commission
- person eddie george
- person financial services authority
- person financial services authority chairman
- person howard davies
- agency sec chairman
- agency Securities and Exchange Commission
- SEC signed Memorandum of Understanding
- CFTC signed Memorandum of Understanding
- Bank of England signed Memorandum of Understanding
- Financial Services Authority signed Memorandum of Understanding
- Arthur Levitt signed Memorandum of Understanding
- Barbara Holum signed Memorandum of Understanding
- Eddie George signed Memorandum of Understanding
- Howard Davies signed Memorandum of Understanding
- Memorandum of Understanding signed on October 27, 1997
- SEC announced Memorandum of Understanding
- CFTC announced Memorandum of Understanding
- Bank of England announced Memorandum of Understanding
- Financial Services Authority will receive banking supervision from Bank of England
- Memorandum of Understanding sets forth procedures for cooperating on market events
- Arthur Levitt is SEC Chairman
- Barbara Holum is CFTC Commissioner
- Eddie George is Bank of England Governor
- Howard Davies is Financial Services Authority Chairman
FOR IMMEDIATE RELEASE 97-96 MEMORANDUM OF UNDERSTANDING SIGNED BY SEC, CFTC, BANK OF ENGLAND AND FINANCIAL SERVICES AUTHORITY Washington, D.C., October 27,1997 -- The United States Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Bank of England jointly announced the signing of a Memorandum of Understanding setting forth a pragmatic approach for cooperating and sharing supervisory information. It is the first formal understanding among US and UK securities, futures and banking regulators. SEC Chairman Arthur Levitt, CFTC Commissioner Barbara Holum, and Bank of England Governor Eddie George, signed the MOU on behalf of their respective agencies. Howard Davies, Chairman of the new UK financial regulator, Financial Services Authority, also signed the MOU to confirm that its provisions will continue upon the transfer of banking supervision from the Bank to the Financial Services Authority some time next year. The MOU will enhance the ability of the regulators to obtain information about the activities of US and UK internationally active firms, including information about their internal controls and risk management systems. The MOU also sets forth procedures for cooperating to address potentially significant market events experienced by US or UK securities or banking firms. The MOU is expected to improve the effectiveness of financial supervision in an era of cross-border and cross-sectoral activity. Commenting on the MOU, SEC Chairman Levitt said: "As evidenced by current market conditions, geographic lines between markets are disappearing and industry lines are blurring as well. Firms that operate as securities brokers in one nation may operate as a bank in another. This MOU is truly a milestone in regulatory cooperation in an era where there is much truth to the adage that a chain is only as strong as its weakest link. With this MOU, and more importantly, with the relationships the SEC and the CFTC have built with the Bank, the SIB, and now with the Financial Services Authority, we are forging a very strong chain indeed." CFTC Commissioner Holum commented: "On behalf of the Commodity Futures Trading Commission, I am pleased to execute this MOU that symbolizes the increased cooperation among the regulators of the banking, securities and futures sectors. It is no longer possible for any one regulator to supervise adequately firms that operate globally, and cooperation among regulatory authorities is essential. We are therefore pleased to join in this precedent-setting initiative that can significantly enhance our ability to supervise firms engaged in global operations. We join with the SEC in looking forward to increasing our existing good relations with our UK counterparts." Bank of England Governor, Eddie George said: "The Bank has over recent years built up an extensive network of information sharing agreements with overseas banking supervisors which we will be bequeathing to the Financial Services Authority. And I particularly welcome this MOU which cements the close relationships that already exist between banking and securities supervisors in the UK and the US. Such relationships are essential in a world increasingly dominated by global financial conglomerates." Financial Services Authority Chairman, Howard Davies, welcomed the MOU and said: "There could not have been a better start for the Financial Services Authority, on its first day, than to sign an MOU with the SEC and CFTC. It is a symbol of the commitment we plan to give to international cooperation in the future." # # #
FOR IMMEDIATE RELEASE 97-96 MEMORANDUM OF UNDERSTANDING SIGNED BY SEC, CFTC, BANK OF ENGLAND AND FINANCIAL SERVICES AUTHORITY Washington, D.C., October 27,1997 -- The United States Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Bank of England jointly announced the signing of a Memorandum of Understanding setting forth a pragmatic approach for cooperating and sharing supervisory information. It is the first formal understanding among US and UK securities, futures and banking regulators. SEC Chairman Arthur Levitt, CFTC Commissioner Barbara Holum, and Bank of England Governor Eddie George, signed the MOU on behalf of their respective agencies. Howard Davies, Chairman of the new UK financial regulator, Financial Services Authority, also signed the MOU to confirm that its provisions will continue upon the transfer of banking supervision from the Bank to the Financial Services Authority some time next year. The MOU will enhance the ability of the regulators to obtain information about the activities of US and UK internationally active firms, including information about their internal controls and risk management systems. The MOU also sets forth procedures for cooperating to address potentially significant market events experienced by US or UK securities or banking firms. The MOU is expected to improve the effectiveness of financial supervision in an era of cross-border and cross-sectoral activity. Commenting on the MOU, SEC Chairman Levitt said: "As evidenced by current market conditions, geographic lines between markets are disappearing and industry lines are blurring as well. Firms that operate as securities brokers in one nation may operate as a bank in another. This MOU is truly a milestone in regulatory cooperation in an era where there is much truth to the adage that a chain is only as strong as its weakest link. With this MOU, and more importantly, with the relationships the SEC and the CFTC have built with the Bank, the SIB, and now with the Financial Services Authority, we are forging a very strong chain indeed." CFTC Commissioner Holum commented: "On behalf of the Commodity Futures Trading Commission, I am pleased to execute this MOU that symbolizes the increased cooperation among the regulators of the banking, securities and futures sectors. It is no longer possible for any one regulator to supervise adequately firms that operate globally, and cooperation among regulatory authorities is essential. We are therefore pleased to join in this precedent-setting initiative that can significantly enhance our ability to supervise firms engaged in global operations. We join with the SEC in looking forward to increasing our existing good relations with our UK counterparts." Bank of England Governor, Eddie George said: "The Bank has over recent years built up an extensive network of information sharing agreements with overseas banking supervisors which we will be bequeathing to the Financial Services Authority. And I particularly welcome this MOU which cements the close relationships that already exist between banking and securities supervisors in the UK and the US. Such relationships are essential in a world increasingly dominated by global financial conglomerates." Financial Services Authority Chairman, Howard Davies, welcomed the MOU and said: "There could not have been a better start for the Financial Services Authority, on its first day, than to sign an MOU with the SEC and CFTC. It is a symbol of the commitment we plan to give to international cooperation in the future." # # #