Ireland And China: Financial Regulators Strengthen Connections

Author:Mr Brian Dillon
Profession:Dillon Eustace
 
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Introduction

The Irish Olympic boxing team was not the only successful Irish

group to travel to the People's Republic of China (the

"PRC") recently; the Taoiseach, Brian Cowen T.D., led a

trade mission to the PRC at the end of October.

During the visit he presided over the signing of a Memorandum of

Understanding ("MoU") between the Irish Financial

Services Regulatory Authority (the "Financial

Regulator"), the China Securities Regulation Commission (the

"CSRC") and the China Banking Regulatory Commission (the

"CBRC").

The CSRC is the state agency of the Securities Policy Committee

of the State Council of the PRC and is responsible for the

supervision and regulation of national securities and futures

markets in the PRC, while the CBRC is the state agency of the State

Council responsible for the regulation of the Chinese banking

sector.

The signing of the MoU was the culmination of an initiative

taken in the middle of 2007, following recognition of the fact that

the lack of a MoU with the PRC left Ireland's funds industry at

a disadvantage with some of its competitors. These countries had

arrangements in place for a number of years for other financial

services but which their fund industries were now able to benefit

from.

The MoU is intended to form the basis of future co-operation

between the two regulators, it should be noted that it does not

create any binding international obligations on either of the

parties. The MoU does not modify or supersede any laws or

regulatory requirements in force in, or applying to, Ireland or the

PRC and does not create any rights enforceable by third parties,

nor does it affect any arrangements under other memoranda of

understanding which either supervisory authority may have agreed

with other regulators in third party countries.

The purpose of the MoU is to protect investors and promote the

development of the securities markets by providing a framework for

co-operation, increased mutual understanding and the exchange of

information, to the extent permitted by the laws and regulations in

force in Ireland and the PRC, and the availability of respective

resources of the regulators. It will facilitate financial

institutions from either the PRC or Ireland doing business together

in either country.

One important aspect which should be noted from the MoU is that,

to the extent permitted by its domestic laws and regulations, the

Financial Regulator, the CSRC and the CBRC will use reasonable

efforts to provide the...

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