FCA and SEC have signed two MoUs to ensure minimal disruption when the UK leaves the EU. Andrew Bailey, FCA CEO met Jay Clayton, SEC Chairman to sign the MoUs.
The first MoU updates the comprehensive supervisory arrangement between the FCA and SEC originally signed in 2006. The main change to this agreement is to expand the scope of the MoU to include firms that conduct derivatives, credit rating agencies and derivatives trade repository businesses to reflect post-financial crisis reforms and the FCA’s assumption of responsibility from ESMA for overseeing these businesses in the event of Brexit.
The second MoU updates the MoU agreed with the SEC in 2013 under the AIFMD regime. The MoU ensures investment advisers, fund managers, private funds and other covered entities will be able to continue cross-border operations without interruptions, regardless of the outcome of Brexit.
The MoUs would come into force on the date EU legislation ceases to have direct effect to the UK.