CFTC and Canadian Regulators Agree Entent Cordiale
On 27 March 204, the Commodity Futures Trading Commission (CFTC), the Alberta Securities Commission, the British Columbia Securities Commission, the Ontario Securities Commission, and the Autorite des marches financiers (the “Authorities”) announced that they had reached agreement over the terms of a Memorandum of Understanding (“MOU”) regarding cooperation and the exchange of information in the supervision and oversight of regulated entities that operate on a cross-border basis in both (i) the United States and (ii) Alberta, British Columbia, Ontario, or Quebec.
The MOU itself does not contain any surprises. It does not create legally binding obligations, supersede domestic law or in any way limit the discretion of any Authority. Moreover, the Authorities anticipate that, in the main, cooperation will be achieved through informal consultations, supplemented as needed by more formal cooperation. However, the MOU does detail the terms of a request-based information sharing mechanism, a methodology for the conduct of on-site visits and a commitment to periodic meetings. The key provisions deal with the treatment and usage of confidential information – which may only be used for the purposes of supervision and oversight without the express consent of the Authority which provided the information.