On 18 April 2024, the Financial Conduct Authority (FCA) and the Bank of England (BoE) (exercising its prudential regulation functions) published an updated Memorandum of Understanding (MoU).

The MoU sets out the high-level framework the FCA and the Prudential Regulation Authority (PRA) use to coordinate and cooperate in carrying out their respective responsibilities. The updated version replaces the previous MoU, which was adopted on 2 July 2019.

The MoU outlines:

  • The purpose and scope of the MoU and of the two regulators.
  • The regulatory objectives of the FCA and PRA.
  • Respective roles with regard to regulated activities, designated activities and authorised persons.
  • Coordination in investigations, enforcement and other formal regulatory action.
  • PRA powers of direction.
  • Investigations into regulatory failure.
  • Fees.
  • Cross-board positions.
  • Financial services Regulatory Initiatives Forum and Grid.

It also covers general information sharing between the regulators, confidentiality of unpublished information and maintaining the MoU.

This latest version of the MoU reflects developments including certain changes introduced by the Financial Services and Markets Act 2023, the end of the Brexit transition period and consequential changes to the law relating to financial services, and the establishment of the Financial Services Regulatory Initiatives Forum.