US regulator assists SEC to fight capital market misconduct

From left: US Securities and Exchange Commission Office of International Affairs Senior Counsel Marlee M. Engel, SEC Sri Lanka Director General Vajira Wijegunawardane, US Securities and Exchange Commission Office of International Affairs Assistant Director Z. Scott Birdwell and US Securities and Exchange Commission Chicago Regional Office Director David A. Glockner

A  regional training conference on ‘Effective Oversight of Capital Markets: Investigation and Prosecution of Securities  Fraud and Abuse’ was organised by the Securities and Exchange Commission of Sri Lanka (SEC) in association with the United States Securities and Exchange Commission (US SEC) recently.

The conference was designed for capital market regulators engaged in surveillance, investigation and enforcement. A large number of participants from 14 countries and officials of the Colombo Stock Exchange, Central Bank of Sri Lanka and Attorney General’s Department of Sri Lanka attended the conference on the SEC invitation.

The conference addressed best practices in the oversight of capital markets to maximize investor protection and facilitate capital formation. The conference emphasised practical solutions to common market problems and abuses with the goal of making the capital market a more efficient and dynamic engine that provides low-cost capital for economic growth and development.

The programme was spearheaded by high-level personnel of the US SEC responsible for enforcement and prosecution of securities fraud. The programme topics discussed included surveillance, market intelligence, insider trading, market manipulation, financial accounting and disclosure violations, violations by broker dealers and investment managers, cooperation between regulatory and law enforcement authorities, international cooperation and cybersecurity.

The training conference demonstrated the strong bilateral relationship between the two jurisdictions. The SEC had sought the support of its US counterparts to strengthen the capital market regulatory framework in Sri Lanka through consultations on international best practices in market oversight and development. Accordingly, the US officials conducted a full-day in-house workshop for both the Surveillance and Investigation Divisions of the SEC and the exposure to new investigative techniques will undoubtedly aid the SEC in its investigation process. The regulators would continue to collaborate in enhancing the effectiveness of the capital market framework in Sri Lanka through ongoing consultations 
and cooperation.