UK-EU Memorandum of Understanding on Financial Services Cooperation

The HM Treasury has published the content on an upcoming agreement in form of a Memorandum of Understanding (MoU) between the UK government and the European Commission as regards „regulatory cooperation in the area of financial services“. According to the draft, the key purpose of the agreement is to
– regularly exchange information on market and regulatory developments and other issues of common interest,
– provide transparency to each other as to the „process of adoption, suspension and withdrawal of equivalence decisions“, and
– enhance collaboration as regards joint engagements, e.g. in international bodies.
The MoU will thereby entail the creation of Joint EU-UK Financial Regulatory Forum which shall meet at least twice a year and serve as a platform to deliver above noted objectives. Subsequent to each meeting, an announcement shall be made to the outcome of the forum.
The MoU will also incorporate some formal statements, for example as regards the designation of contact points or the retention of regulatory powers of each party to decide upon matters concerning their own jurisdictions.