This program will focus on the initiatives of the Securities and Exchange Commission and foreign securities market regulators aimed at increasing cross-border access to capital markets, including
- Proposed systems of mutual recognition among high-quality national securities market regulatory regimes, through agreements with foreign regulators (already
reached with Australia and under discussion with Canadian and European regulators),
- Use of the SEC's exemptive power (including the proposed amendment to Rule 15a-6 to broaden the access of foreign broker-dealers to US markets
relating to foreign broker-dealers),
- The recent amendment to Rule 12g3-2(b) relating to foreign private issuers (significantly expanding access to investment in foreign securities
through ADRs).
Similar developments in respect of accounting standards (including recognition of IFRS for US issuers) are also under discussion.
Panelists will discuss how these developments impact issuers and broker-dealers in the U.S. and abroad; the attitudes of the SEC and foreign securities regulators; and policy considerations applicable to mutual recognition on accounting issues.
Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Conference
Recommended CLE/CPE Hours: 2.0
(Please note, your State Bar or Accounting Board will make the final determination with respect
to continuing education credit.)
Advance Preparation: Print and review course materials
Course Code: 083734
James L. Eastman
Chief Counsel and Associate Director, Division of Trading and Markets
Reid Feldman
Partner
Karen Dietrich
Associate Director in the Office of International Affairs
Michael Zuppone
Partner, Chairman Securities and Capital Markets Practice Group
Reid Feldman, Partner, Kramer Levin Naftalis & Frankel LLP
- Background and chronology
- longstanding mutual recognition regime adopted by the CFTC
- concerns about competitiveness of U.S. markets and the impact of Sarbanes-Oxley
- competing misconceptions about foreign vs. U.S. markets
- thought leadership by SEC staff and others
- Initiatives of the SEC and foreign regulators
- SEC agreements and discussions with foreign regulators
- rule changes and proposed changes affecting
- foreign private issuers - Rule 12g3-2(b)
- cross-border M&A
- broker-dealers – Rule 15a-6
- How these initiatives are viewed from abroad
- Questions about the impact of the global financial crisis on mutual recognition initiatives
James L. Eastman, Chief Counsel and Associate Director, Division of Trading and Markets, U.S. Securities & Exchange Commission
** Speaker Agenda to be added soon.. **
Karen Dietrich, Associate Director in the Office of International Affairs, Public Company Accounting Oversight Board
- Introduction PCAOB activities
- Registering audit firms
- Inspections
- Investigation
- Enforcement and standard setting.
- International Program
- Inspection of audit firms abroad
- Working with non- US audit regulators
- Discussion on why Board has decline to adopt a mutual recognition framework to date.
Michael Zuppone, Partner, Chairman Securities and Capital Markets Practice Group, Paul Hastings Janofsky & Walker
- What is achieved by mutual recognition?
- US exchanges operate trading screens in and take orders from brokers located in non-US markets; conversely, non-US exchanges operate trading screens in and take
orders from brokers located in US market.
- US brokers establish presence in non-US markets and directly access non-US investors; conversely, non-US brokers establish presence in US market and directly
access US investors.
- Key goal from Issuers' perspective:
- Seamless execution of trades (efficient clearance and settlement mechanism).
- Benefit to Issuers:
- US and non-US investors have access to expanded pools of capital and greater number of investors.
- Lower the cost of capital in cross border trading environment.
- Potential Burden to Issuers:
- US and non US issuers are subject to foreign jurisdictions disclosure regime.
- Do issues have control over decision to trade in other markets; can issuers opt in or opt out?
- Is there a commonality in legal disclosure standards; do issuers compliance burdens increase?
- Does mutual recognition extend to disclosure standards?
- Do issuers undertake additional compliance burdens?
- What threshold of investor participation triggers an additional compliance burden?
- Excecutives in International Business and Financial Industry
- Attorneys/Lawyers in the Financial Services
- Lawyers practicing in Securities and Capital Markets
- Financial Compliance Officers and Risk Managers
- Investment Analysts
- Anyone interested in Securities Law and international financial markets
This is a must attend event to anyone interested in having full understanding about Mutual Recognition.
- New guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A