SEC and AMF Announce Supervisory MOU To Enhance Cooperation for Investment Advisers and Investment Service Providers

Introduction

The U.S. Securities and Exchange Commission (SEC) and France’s Autorité des Marchés Financiers (AMF) announced a new Memorandum of Understanding (MOU) aimed at deepening cooperation on the supervision of investment advisers, asset managers, and other investment service providers that operate across both jurisdictions. The agreement creates a formal framework for consultation, information exchange, and coordinated oversight, helping firms navigate regulatory requirements in the United States and France more efficiently.

Why the MOU Matters

• Cross‑border consistency – By aligning supervisory practices, the SEC and AMF can reduce duplicative reviews and ensure that firms meeting standards in one market are recognized in the other.
• Faster registrations – The SEC will consider the AMF’s supervision when processing registration applications from French‑based asset managers seeking to advise U.S. clients, potentially shortening approval timelines.
• Investor protection – Shared intelligence on market conduct, risk, and compliance strengthens both regulators’ ability to detect and address misconduct that could affect investors on either side of the Atlantic.
• Market confidence – A clear, cooperative regulatory environment signals to global capital‑seeking firms that the U.S. and French markets are stable, transparent, and open to collaboration.

Key Elements of the Agreement

1. Consultation Process – The agencies will consult on matters affecting firms that are regulated by one authority but operate in the other’s jurisdiction. This includes discussing registration applications, supervisory findings, and enforcement actions.
2. Information‑Sharing Protocols – Secure channels will be used to exchange data on compliance, risk assessments, and any material developments that could impact market integrity.
3. Joint Oversight of Asset Managers – French‑supervised asset management companies applying for SEC registration will benefit from a coordinated review that considers the AMF’s prior supervision.
4. Continuous Dialogue – Regular meetings and working groups will be established to address emerging issues, such as fintech innovations, ESG disclosures, and cyber‑risk management.

Practical Implications for Firms

• Streamlined filings – Asset managers and advisers should anticipate a more predictable registration process when seeking to expand into the U.S., provided they maintain robust compliance under AMF rules.
• Enhanced due‑diligence – Firms will need to be prepared to share relevant supervisory information with both regulators, reinforcing the importance of comprehensive record‑keeping.
• Strategic planning – Companies can factor the MOU into their cross‑border growth strategies, leveraging the smoother regulatory pathway to access new investor bases.
• Compliance monitoring – Ongoing monitoring of both SEC and AMF guidance will be essential, as the MOU may evolve to address new market developments.

Closing Thoughts

The SEC‑AMF MOU represents a concrete step toward harmonized supervision of investment advisers and service providers operating in the United States and France. By fostering transparent information exchange and coordinated oversight, the agreement not only eases the regulatory burden for firms but also bolsters investor protection and market stability on both sides of the Atlantic. Companies looking to expand internationally should stay attuned to the evolving collaborative framework and incorporate its benefits into their compliance and growth plans.