Statement Summary
The Securities and Exchange Commission (SEC) and the Food and Drug Administration (FDA) have signed a Memorandum of Understanding (MOU) to boost collaboration in regulatory and enforcement activities. This partnership aims to enhance market oversight while ensuring public health protection.
The MOU facilitates information exchange between the two agencies regarding FDA-related disclosures by public companies, which significantly influence financial markets.
SEC Chairman Paul S. Atkins emphasized the importance of this collaboration in enforcing federal securities laws, while Acting FDA Commissioner Kyle Diamantras highlighted its role in promoting transparency in the life sciences sector. The MOU is effective for three years and can be extended with mutual consent.
Original Statement
The Securities and Exchange Commission and the Food and Drug Administration today announced that they have entered into a Memorandum of Understanding (MOU) designed to assist the agencies in carrying out their respective missions of ensuring the integrity of the financial markets and protecting public health.
The MOU establishes a framework for the agencies to enhance cooperation in their regulatory and enforcement responsibilities in order to improve market oversight and compliance. Among other things, the MOU includes information-sharing protocols to facilitate the exchange of information between the SEC and FDA that is relevant to both agencies’ important missions.
“FDA-related disclosures by public companies have a significant impact on our markets,” said SEC Chairman Paul S. Atkins. “The FDA is a valuable partner in our efforts to administer and enforce applicable disclosure requirements under the federal securities laws, and I look forward to further strengthening our partnership through the MOU.”
“We are proud to partner with the SEC to enhance transparency across the life sciences sector,” said Acting FDA Commissioner Kyle Diamantras J.D. “Streamlining our information-sharing helps protect both the patients who rely on FDA-regulated products and the public trust that drives healthcare innovation.”
The MOU will remain in effect for a period of three years, and it may be extended or modified by the mutual written consent of the agencies.
