The heads of the UK’s Financial Services Authority and the U.S. Securities and Exchange Commission pledged closer co-operation Monday.

Lord Adair Turner, FSA chairman and Hector Sants, FSA executive, met with Mary Schapiro, SEC chairwoman, as part of their regular SEC-FSA Strategic Dialogue.

Following the meeting they stressed the importance of expanding supervisory co-operation between the two agencies, and said they plan to review the existing memorandum of understanding between them, which is designed to promote the co-ordination of supervision in cross-border financial institutions and markets.

They also noted that co-operative efforts between the staffs of the two agencies are increasing in areas such as oversight of credit rating agencies, hedge fund advisors and the clearing of over-the-counter derivatives. And, they continued discussions in the areas of corporate governance, particularly board risk oversight, and executive compensation.

“Global co-operation between regulators is central to tackling the reform agenda and the relationship between the FSA and the SEC is key for international markets,” said Sants. “Our ongoing dialogue gives us the opportunity to widen the areas of co-operation between the FSA and the SEC, in particular progressing our collaborative work on hedge funds and credit rating agencies.”

IE