The U.S. Securities and Exchange Commission announced that it is taking steps towards mutual recognition for other countries’ regulatory regimes, including a process that would enable it to deal with Canada’ fragmented provincial system.

The SEC said that it is planning a series of actions to further the implementation of mutual recognition for high-quality regulatory regimes in other countries. Among the steps it’s taking, the SEC said it’s developing a framework for mutual recognition discussions with jurisdictions comprising multiple securities regulators, including Canada and the European Union (whose national securities regulators are subject to supranational legislation and directives).

It is also exploring initial agreements with foreign regulators, which would be based upon a comparability assessment by the SEC and by the foreign authority of one another’s regulatory regimes. The SEC noted that it is considering adoption of a formal process for engaging other national regulators on the subject of mutual recognition; and it’s proposing reforms to a rule that would improve the process by which U.S. investors have access to foreign broker-dealers.

“The steps we are announcing today are designed to better coordinate SEC regulation of the U.S. capital markets with our counterparts’ regulation in the larger global marketplace,” said SEC chairman Christopher Cox. “Innovations in technology have eliminated many barriers to cross-border access between U.S. and foreign markets, and that in turn has increased U.S. investor demand for foreign investment opportunities. By beginning to build a sturdy basis for cooperation among securities regulators who share the same concerns, we can greatly improve investor protection and market efficiency worldwide.”

The SEC noted that as global markets have become more interconnected, the SEC has been approached by market participants and foreign regulators regarding the possibility of reducing regulatory barriers between high-quality markets.