SEC and FDA open a nonpublic information channel for filing reviews and enforcement

The SEC can now use nonpublic FDA records in public-company filing reviews and enforcement matters under an agreement the agencies signed Monday.

The six-page memorandum covers FDA-regulated products and the companies that make, distribute and sell them. Each agency must create a channel for requests and a secure way to transfer nonpublic information. The SEC must name contacts in its Enforcement and Corporation Finance divisions, while the FDA Office of Chief Counsel leads referrals of possible violations to the SEC.

There are limits. The SEC cannot pass nonpublic FDA information beyond its officers, employees and contractors without the FDA's written permission. The agreement does not cover public information, testimony requests or subpoenas, and it does not create enforceable obligations.

The term is three years. Either agency may end it on 30 days' notice.