HM Treasury News Release
10th September 1999
AGREEMENT ON INTERNATIONAL FINANCIAL REGULATORY
CO-OPERATION WITH TURKEY
Better communication and exchange of information between national
financial regulators will help protect investors in cross-border dealings
involving UK and Turkish investments, Economic Secretary Melanie Johnson
Announcing the eighth such bilateral agreement to be reached, Miss
"I welcome this Memorandum of Understanding on international regulatory
co-operation between the UK and Turkey. The agreement, between the
Treasury, the Financial Services Authority, the London Stock Exchange,
and the Capital Markets Board of Turkey, will help in the process
of protecting investors in our two countries.
"This will add to the existing agreements with the US, Australian,
Swiss, Hong Kong, Japanese, Chinese, Russian, and EU authorities in
enhancing the attractiveness of the City of London as a major financial
centre dealing with counterparts around the world and encouraging
more Turkish companies to list in London.
"This agreement will seek to protect investors and promote the integrity
of financial markets by providing a framework of co-operation between
"This framework will provide clear channels of communication, enhance
mutual understanding, and allow the regulatory authorities to provide
each other with investigative assistance and exchange confidential
"This should assist the enforcement of laws, rules, and regulations
in the field of securities, and help tackle any insider dealing, market
manipulation, or other fraudulent and deceptive practices."
NOTES FOR EDITORS
1. Under the Financial Services Act 1986, HM Treasury is responsible
for handling requests for assistance from overseas regulatory authorities.
With the increasing globalisation of financial markets, regulatory
authorities in different countries need to work ever more closely
with each other in order to combat breaches of rules, regulations,
2. Co-operation normally involves the exchange of confidential regulatory
information concerning market transactions. This would include information
on who has done which deals with who and at what time. Co-operation
may also extend to investigating on behalf of an overseas regulatory
3. In the UK, this information would normally be held or obtained
by the Financial Services Authority. London Stock Exchange is the
UK's competent authority for stock exchange listing. The Department
of Trade and Industry is also able to provide some assistance using
its powers under the Companies Act.
4. Six Turkish companies have already listed on the London Stock
Exchange, raising a total of US$700m. Turnover in Turkish equities
on the Exchange's markets amounted to US$14 billion in 1998.
5. The Capital Markets Board of Turkey is able to provide broadly
equivalent types of assistance to the UK authorities. Securities market
activity in Turkey is on the incline, and our Memorandum of Understanding
should help reduce the uncertainties of such cross-border securities
6. Bilateral Memoranda of Understanding are not required between
EU Member States in order to provide for mutual assistance. Outside
the EU, the UK regulatory authorities currently have in force bilateral
Memoranda of Understanding with the US, Australian, Swiss, Hong Kong,
Japanese, Chinese, and Russian authorities.
7. Media enquiries should be addressed to Charles Keseru in the Treasury
press office on 0171 270 5188 or Jeremy Hughes in
the London Stock Exchange press office on 0171 797 1395.
8. If you have access to the Internet, you can find this news release
and other Treasury information at www.hm-treasury.gov.uk