The UK’s financial regulator and its US counterpart have signed an agreement to continue sharing information once the UK pulls out of the European Union.
The Financial Conduct Authority (FCA) and the US Securities and Exchange Commission (SEC) have signed memoranda of understanding (MOU) to safeguard their ability to cooperate when providing oversight of regulated firms engaged in cross-border activity.
Confirmed at a meeting in London, these amendments build on an agreement first established in 2006 providing a comprehensive supervisory framework for regulated firms operating across US and UK national borders.
The updated MoU extends the range of firms covered under the agreement to include those engaging in derivatives, credit ratings and derivatives trade-repository business, bringing it into line with regulatory changes made since 2006 under the US Dodd Frank Act and the European Market Infrastructure Regulation.
In the event of Brexit, this also prepares the way for the FCA to take over supervision of trade repositories and credit rating agencies in the UK from ESMA, the European Securities and Markets Authority.
In the alternative investments space, it introduces amendments required under the UK Alternative Investment Fund Managers Regulations ahead of a UK withdrawal.
“The updated MOU ensures that investment advisers, fund managers, private funds and other alternative investment firms regulated by the FCA or SEC will be able to continue to operate on a cross-border basis without interruption, regardless of the outcome of the UK’s withdrawal from the EU”, said a joint statement from the two regulators.
FCA chief executive Andrew Bailey said that these amendments are designed to ensure continuity and stability for consumers and investors in the UK and the US, as well as ensuring that the UK remains a key market for funds and fund managers.
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