SEC and FCA reaffirmed their commitment to continue close cooperation and information-sharing during Brexit. As evidence of their long-standing partnership, Jay Clayton, the SEC Chairman, met with Andrew Bailey, the CEO of FCA, 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. These MoUs will come into force on the date EU legislation ceases to have direct effect in the United Kingdom.
The first MoU, which was 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:
- Post-financial crisis reforms related to derivatives
- FCA’s assumption of responsibility from ESMA for overseeing credit rating agencies and trade repositories in the event of Brexit
The second MoU, which was originally signed in 2013, is required under the UK Alternative Investment Fund Managers Regulations. The MoU provides a framework for supervisory cooperation and exchange of information related 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, which are regulated by SEC and FCA, will be able to continue to operate on a cross-border basis without interruption, regardless of the outcome of the withdrawal of UK from EU.
Related Link: Press Release
Keywords: Americas, Europe, US, UK, Banking, MoU, Brexit, Supervisory Cooperation, OTC Derivatives, Credit Ratings, CRA, FCA, SEC
Previous ArticleBoE and PRA Publish Annual Reports for 2018-19
The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA
The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.
The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.
The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.
In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.
The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.
The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).
EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.