Financial Times: SEC chief aims for global co-operation: The new head of the chief US financial watchdog on Thursday pledged co-operation with overseas securities regulators so as to nurture “global investor confidence”. “He said “European frauds” such as Vivendi, Royal Dutch Shell and Parmalat demonstrated that corporate scandals were not confined to the US..”: Posted Friday 7 October 2005

By Andrew Parker in New York

Published: October 6 2005

The new head of the chief US financial watchdog on Thursday pledged co-operation with overseas securities regulators so as to nurture “global investor confidence”.

Christopher Cox, who became chairman of the Securities and Exchange Commission in August, said cross-border collaboration between regulators was perhaps most important in dealing with wrongdoing by companies and individuals.

His speech to a conference of lawyers was the first time Mr Cox had publicly addressed the international dimension of his work.

He stressed the common commitments of national financial regulators to “clear and truthful disclosure” and “strong and swift enforcement”, and said they were continually developing a “common language”.

“It is absolutely vital that we do so, because serious collaboration is going to be necessary in addressing global investor confidence,” said Mr Cox.

He said “European frauds” such as Vivendi, Royal Dutch Shell and Parmalat demonstrated that corporate scandals were not confined to the US.

The SEC has attracted criticism outside the US over the past three years because of some of its policy making and enforcement of the securities laws.

Some European and Asian companies that must comply with the 2002 Sarbanes Oxley law have complained about how they had to tailor their accounting and corporate governance practices to US requirements, which are regarded as complex and expensive.

The SEC issued rules to complement the Sarbanes Oxley law, although it did make some concessions to European and Asian companies after they highlighted how the legislation clashed with regulations in their home countries.

Controversy has also swirled around the SEC because of how its enforcement staff insisted on investigating European scandals such as Ahold and Parmalat.

Mr Cox told the conference organised by the American Bar Association that the SEC had no interest in imposing different regulations to overseas regulators “just for the sake of being different”.

“Whenever we can find a way to achieve our collective regulatory goals by harmonising, converging or mutually recognising our various national standards, we and our foreign collaborators will do it,” he said.

Mr Cox has in recent weeks met leaders of some overseas financial regulators, including Callum McCarthy, chairman of the UK Financial Services Authority.

He highlighted how the International Organisation of Securities Commissions, the body that brings together national securities regulators, fostered common goals on securities regulations.

“Collaboration and discussion among regulators from around the world will certainly result in greater convergence of approaches in dealing with our shared regulatory objectives,” he said.

Mr Cox warned some differences would persist, and suggested they could be a valuable way for regulators to learn from each other “about what works and what does not”.

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