EU-UK Memorandum of Understanding on financial services regulatory cooperation: Opening a new chapter
On 27 June 2023, the EU and UK signed a memorandum of understanding (MoU) to enhance regulatory cooperation in financial services. The MoU establishes the Joint EU-UK Financial Regulatory Forum, which aims to promote transparency, compatibility of regulatory standards, and the exchange of information and views.
The framework allows for bilateral exchanges on regulatory and market developments, highlighting transparency and appropriate dialogue. The cooperation covers various areas, including regulatory implementation, risk analysis, and efforts to combat money laundering. While the MoU does not create legal obligations or financial commitments, it fosters ongoing collaboration and addresses common challenges.
The Forum is intended to hold formal meetings at least every six months, with flexibility for additional preparatory meetings, ad hoc groups, and discussions involving regulatory bodies, member states, government departments, and experts.
The first meeting of the Joint EU-UK Financial Regulatory Forum is scheduled for the autumn. This milestone in regulatory cooperation will enable constructive dialogue on regulatory changes, international developments, and potential risks to financial markets. The framework facilitates discussions on crucial issues like combating financial crime, promoting sustainable finance, and fostering the growth of digital finance. Overall, this cooperation between the UK and the EU represents a positive step forward, ensuring ongoing collaboration and addressing common challenges in the financial services sector post-Brexit.
The MoU can be found here
European Commission’s press release can be found here
UK’s press release can be found here