The SEC and the DOJ Antitrust Division signed an interagency Memorandum of Understanding ("MOU") to promote greater competition within the securities industry. The MOU has yet to be made public.
According to the press release, under the MOU, the SEC and DOJ established a framework to facilitate communications and the review of legal matters impacting competition in the securities industry. The MOU includes provisions requiring the agencies to (i) hold scheduled meetings among the agencies' officials and (ii) implement an exchange of relevant information.
SEC Chair Jay Clayton stated that the MOU recognizes the agencies' policy overlaps with regard to competition within the securities industry, and also acknowledged where areas of expertise may differ. Assistant Attorney General Makan Delrahim added that he expects the MOU to yield "enhanced consumer benefits" and to lead to thorough analyses of competition and securities law matters.
Commentary
The DOJ has participated in a financial industry inter-agency task force since the 2008 financial crisis. The new MOU between the DOJ and SEC appears to focus specifically on firms in the securities industry. While DOJ has expertise in competition matters, it frequently lacks industry expertise in connection with securities and financial services industry products and services. The MOU should facilitate DOJ's ability to bring such expertise to bear in its securities and financial service industry investigations. Conversely, the MOU suggests a closer cooperation between the agencies for SEC civil investigations that the agency believes may have involved criminal activity.
Primary Sources
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