The FCA has published a memorandum of understanding (MoU) it has entered into with the Bank of England (BoE), including the PRA, setting out the high-level framework under which they will co-operate on the supervision of markets and market infrastructure.
A related FCA press release further explains that the MoU reflects the FCA and PRA’s responsibilities for the supervision of financial market infrastructure (FMI) participants supervised by the BoE, together with the FCA’s responsibilities for trading venues that rely on, or are connected with, FMIs.
So far as a result of the joint efforts of the FCA and BoE over the last 11 months, industry and staff are able to see that the new arrangement has worked well and there has been no material duplication between the two entities. Further, comments indicated that it is important to retain strong working relationships between individuals who worked together at the FSA but have now moved into different roles.
The press release, however, does not indicate whether and, if so, how, the MoU has been amended as a result of the review. It does note though, that the FCA and the BoE continue to refine their co-operative working arrangements and welcome industry suggestions for areas for consideration.