A draft Memorandum of Understanding (MoU) outlining a framework for structured, voluntary regulatory cooperation in the financial services sector has been adopted by the European Commission (EC) and the UK.
The framework operates outside the structure of the Trade and Cooperation Agreement (TCA), and does not cover the access of UK-based firms to the single market or EU firms’ access to the UK market.
The MoU follows the Joint Declaration on Financial Services Regulatory Cooperation between the UK and the EU, itself delivered alongside the Trade and Cooperation Agreement. When the MoU has been signed, a Joint EU-UK Financial Regulatory Forum will be established to enable structured dialogue on issues confronting the sector.
Mairead McGuinness, commissioner for financial services at the Financial Stability and Capital Markets Union, says: “The Windsor Framework allowed the EU and the UK to open a new chapter in our partnership based on a spirit of mutual trust and cooperation.
“I am confident that our relationship and future engagement in financial services will be built on a shared commitment to preserve financial stability, market integrity, and the protection of consumers and investors."
