On 8 April 2019, the FCA announced that it had agreed two Memoranda of Understanding (MoU) with the Australian Securities and Investments Commission (ASIC) to ensure there is continuity once the UK leaves the EU. The MoUs cover trade repositories and alternative investment funds (AIFs).

The MoU on trade repositories will ensure that ASIC can continue to access data on derivatives contracts held in UK trade repositories, where the information is needed for ASIC to fulfil its responsibilities and mandates. The MoU is established under Article 76(2) of the UK’s onshored European Markets Infrastructure Regulation.

The MoU on AIFs will cover Australian managers that manage or market AIFs in the UK and UK managers that manage or market AIFs in Australia, as well as their delegates and depositaries. The existence of an MoU between ASIC and the FCA is a precondition of the UK’s alternative investment managers regime, for allowing managers from third countries access to the UK market.

HM Treasury has confirmed that existing equivalence decisions granted in respect of Australia by the European Commission before exit day will generally be incorporated into UK law and will continue to apply post-Brexit.  The UK will adopt existing EU equivalence decisions that relate to Australia’s supervisory and regulatory regime for trading venues, OTC derivatives markets and credit rating agencies.