Tuesday February 5 2019


News Source: Fund Regulation

Focus: General - Fund Regulation

Type: General

Country: European Union



On 1st of February 2019, the European Securities and Markets Authority (ESMA) and European securities regulators agreed upon Memoranda of Understanding (MoUs) with the UK Financial Conduct Authority (FCA).

The MoUs form part of authorities’ preparations should the UK leave the EU without a withdrawal agreement, the no-deal Brexit scenario.

The MoUs will therefore only take effect in the event of a no-deal Brexit scenario. The MoUs are similar to those already concluded on the exchange of information with many third country supervisory authorities.

The MoUs are:

  1. An MoU between ESMA and the FCA regarding the exchange of information in relation to the supervision of credit rating agencies (CRAs) and trade repositories (TRs). The MoU will allow ESMA to continue to discharge its mission and meet its mandate regarding investor protection, orderly markets and financial stability in the EU; and
  2. A multilateral MoU (MMoU) between EU/EEA securities regulators and the FCA covering supervisory cooperation, enforcement and information exchange between individual regulators and the FCA, and will allow them to share information relating to, amongst others, market surveillance, investment services and asset management activities. This, in turn, will allow certain activities, such as fund manager outsourcing and delegation, to continue to be carried out by UK based entities on behalf of counterparties based in the EEA.

Click on the above link for further information.