Ireland And China: Financial Regulators Strengthen Connections

Author:Mr Brian Dillon
Profession:Dillon Eustace
 
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IntroductionThe Irish Olympic boxing team was not the only successful Irishgroup to travel to the People's Republic of China (the"PRC") recently; the Taoiseach, Brian Cowen T.D., led atrade mission to the PRC at the end of October.During the visit he presided over the signing of a Memorandum ofUnderstanding ("MoU") between the Irish FinancialServices Regulatory Authority (the "FinancialRegulator"), 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 Committeeof the State Council of the PRC and is responsible for thesupervision and regulation of national securities and futuresmarkets in the PRC, while the CBRC is the state agency of the StateCouncil responsible for the regulation of the Chinese bankingsector.The signing of the MoU was the culmination of an initiativetaken in the middle of 2007, following recognition of the fact thatthe lack of a MoU with the PRC left Ireland's funds industry ata disadvantage with some of its competitors. These countries hadarrangements in place for a number of years for other financialservices but which their fund industries were now able to benefitfrom.The MoU is intended to form the basis of future co-operationbetween the two regulators, it should be noted that it does notcreate any binding international obligations on either of theparties. The MoU does not modify or supersede any laws orregulatory requirements in force in, or applying to, Ireland or thePRC and does not create any rights enforceable by third parties,nor does it affect any arrangements under other memoranda ofunderstanding which either supervisory authority may have agreedwith other regulators in third party countries.The purpose of the MoU is to protect investors and promote thedevelopment of the securities markets by providing a framework forco-operation, increased mutual understanding and the exchange ofinformation, to the extent permitted by the laws and regulations inforce in Ireland and the PRC, and the availability of respectiveresources of the regulators. It will facilitate financialinstitutions from either the PRC or Ireland doing business togetherin either country.One important aspect which should be noted from the MoU is that,to the extent permitted by its domestic laws and regulations, theFinancial Regulator, the CSRC and the CBRC will use reasonableefforts to provide the other regulatory authorities with anyrelevant information that...

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