Britain's Financial Services Authority says it is committed to helping the Securities and Exchange Commission with overseas investigations, after winning an appellate court battle that aimed to block its efforts to obtain confidential evidence for its U.S. friends.

Lawyers said the victory gives new support to the SEC’s ability to obtain evidence outside of the United States.

Last August, a court ruled that the FSA had overstepped the mark when—acting on a request from the SEC—it tried to force a London accounting firm to hand over confidential information about two of its clients.

The SEC wanted the information as part of an investigation into suspected market manipulation on the New York Stock Exchange.

The FSA agreed to help and started the process of compelling the accounting firm to provide the information that the SEC wanted. However, the two clients involved—Amro International SA and Creon Management SA—fought back. They issued court proceedings, claiming that the FSA was misusing its powers and should back off.

The court upheld their complaint because the SEC had not alleged any wrongdoing by the two clients and the document request was too broad. It also criticized the FSA for not doing enough to check whether it was necessary or proportionate to request such a wide range of documents.

But the FSA appealed the ruling and won. According to a briefing note from lawyers Fulbright & Jaworski, “the Court of Appeal has provided robust support for the FSA’s approach to transnational financial regulatory investigations.” The firm added that the judgment “provides further support for the SEC’s ability to obtain evidence from beyond the borders of the United States.”

Margaret Cole, FSA director of enforcement and financial crime, said: "The FSA welcomes the Court of Appeal's decision, especially the recognition of the importance of international cooperation in investigating market abuse and other misconduct. Obtaining information in other jurisdictions can be key to successful enforcement action. The FSA understood the SEC's need to secure vital evidence for proceedings in the United States and is committed to providing similar help in other cases."