The UK’s Financial Conduct Authority (FCA) has inked memoranda of understanding (MoUs) with the European Securities and Markets Authority (ESMA) and European regulators in contingency planning for no-deal Brexit.
Particularly, the agreement will support cross-border supervision of firms and information exchange in the event of Britain failing to strike a divorce settlement with the EU.
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The agreement with ESMA involves oversight of credit rating agencies as well as trade repositories.
ESMA said that the agreement will enable it to carry out its objective of “investor protection, orderly markets and financial stability in the EU”.
The UK regulator also signed a multilateral MoU with EEA National Competent Authorities (NCAs).
The agreement includes supervisory cooperation, enforcement and information sharing related to market surveillance, investment services and asset management activities, among others.
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By GlobalDataFCA CEO Andrew Bailey said: “I am pleased we have been able to agree these MoUs. They will allow for continued close cooperation in the event the UK leaves the EU without an agreement.
“They should also minimise the potential for disruption, which we know is particularly important for the investment management sector, Credit Rating Agencies and Trade Repositories.”
In April last year, FCA announced that it had set aside £30m to cover costs related to UK’s departure from the EU bloc.
