Financial Conduct Authority
The UK Financial Conduct Authority and the US Securities and Exchange Commission sign updated supervisory cooperation arrangements
The United Kingdom (UK) Financial Conduct Authority (FCA) and the United States (US) Securities and Exchange Commission (SEC) recently (29 March 2019) reaffirmed their commitment to continue close cooperation and information sharing in the event of the UK’s withdrawal from the European Union (EU).
As evidence of their long-standing partnership, Andrew Bailey, FCA CEO met with Jay Clayton, SEC Chairman and signed two updated Memoranda of Understanding (MOUs) to ensure the continued ability to cooperate and consult with each other regarding the effective and efficient oversight of regulated entities across national borders. At the meeting in London, Chairman Clayton and Andrew Bailey also discussed risks posed by jurisdictional share trading obligations, which could increase market fragmentation and impose unnecessary costs on investors.
Andrew Bailey, Chief Executive of the FCA, recently said:
“As part of our preparations for Brexit we have been working with our partners in the EU and globally to ensure there is minimal disruption. These MoUs will ensure the UK can continue to be a key market for funds and fund managers. Today’s amendments will ensure continuity and stability for consumers and investors in the UK and US.”
Jay Clayton, Chairman of the SEC, recently said:
“The SEC and the FCA have a long history of effective cooperation on supervisory and other matters. The amended MOUs we entered into today reaffirm this commitment and collaboration with respect to the oversight of our respective registrants for the benefit of each of our markets and investors.”
The first MOU, originally signed in 2006, is a comprehensive supervisory arrangement covering regulated entities that operate across the national borders. The MOU was updated to, among other things, expand the scope of covered firms under the MOU to include firms that conduct derivatives, credit rating and derivatives trade repository businesses to reflect (i) post-financial crisis reforms related to derivatives and (ii) the FCA’s assumption of responsibility from the European Securities and Markets Authority for overseeing credit rating agencies and trade repositories in the event of the UK’s withdrawal from the EU.
The second MOU, which is required under the UK Alternative Investment Fund Managers Regulations, was originally signed in 2013. The MOU provides a framework for supervisory cooperation and exchange of information relating to the supervision of covered entities in the alternative investment fund industry. The updated MOU ensures that investment advisers, fund managers, private funds and other covered entities in the alternative investment fund industry that are regulated by the SEC and the FCA 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.
These MOUs will come into force on the date EU legislation ceases to have direct effect in the United Kingdom.
Notes to editors
- Find out more information from the FCA about preparing for Brexit
- On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this it has 3 operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA.
Latest News from
Financial Conduct Authority
FCA data show 5% drop in complaints in the second half of 201819/04/2019 10:25:00
The Financial Conduct Authority (FCA) yesterday published the complaints figures for regulated firms for the second half of 2018.
FCA sets out its priorities for 2019/2018/04/2019 10:25:00
The Financial Conduct Authority (FCA) yesterday published its Business Plan for 2019/20, which outlines the key priorities for the coming year.
Insurance firms failing to consider value of the products and services provided to consumers11/04/2019 13:43:00
The Financial Conduct Authority (FCA) is warning General Insurance (GI) firms about manufacturing, sales and distribution approaches that can lead to customers purchasing inappropriate products, paying excessive prices or receiving poor service.
Upper Tribunal publishes decision on Linear Investments Limited in relation to penalty imposed by FCA10/04/2019 15:10:00
The Upper Tribunal has published its decision on the reference made by Linear Investments Limited (Linear) in relation to the penalty imposed by the Financial Conduct Authority (FCA).
FCA fines Standard Chartered Bank £102.2 million for poor AML controls09/04/2019 16:10:00
The Financial Conduct Authority (FCA) has fined Standard Chartered Bank (Standard Chartered) £102,163,200 for Anti-Money Laundering (AML) breaches in two higher risk areas of its business. This is the second largest financial penalty for AML controls failings ever imposed by the FCA.
UK Financial Conduct Authority and Australian Securities and Investments Commission agree to strengthen cooperation post-Brexit08/04/2019 14:10:00
The UK Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC) today announced they have agreed two Memoranda of Understanding to ensure there is continuity once the UK leaves the European Union. The MoUs cover trade repositories and alternative investment funds (AIFs).
Claims management companies enter FCA regulation02/04/2019 10:20:00
The Financial Conduct Authority (FCA) began regulating the claims management industry as of yesterday (1 April). All claims management companies (CMCs) in England, Scotland and Wales will now have to demonstrate they meet and maintain minimum standards set by the FCA. All existing and new CMCs will need to apply to the FCA for authorisation.
Brexit: the FCA confirms final rules for firms29/03/2019 15:20:00
The Financial Conduct Authority (FCA) has today published its final instruments and guidance that will apply in the event the UK leaves the EU without a deal or an implementation period.
FCA fines Goldman Sachs International £34.3 million for transaction reporting failures29/03/2019 14:20:00
Goldman Sachs International (GSI) has been fined £34,344,700 by the Financial Conduct Authority (FCA) for failing to provide accurate and timely reporting relating to 220.2 million transaction reports between November 2007 and March 2017.