6.2 The need for change

Formalised coordination and cooperation between the regulators can no longer be an aspiration. It must become a reality. Coordination and cooperation will facilitate quicker detection of misconduct and allow for more timely enforcement action. Coordination must go beyond the current memorandum of understanding and informal meetings between representatives of the agencies. The regulators should be required to provide information to each other and to meet at particular intervals. The exchange of critical information should be required, facilitated and protected.

The financial regulators must not be permitted to pursue what they independently perceive to be their own interests in respect of entities or laws in respect of which there is joint responsibility.

While many of the arrangements for inter-regulator collaboration will need to be worked out and agreed between the regulators, the approach should be founded on unambiguous rules for co-operation and information sharing.