Update on Bank of England and Financial Conduct Authority Memorandum of Understanding on the supervision of market infrastructure and payment systems

Domestically, the Bank co-operates with both the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR) in relation to supervising market infrastructure and payment systems respectively.
Published on 09 February 2021

The frameworks for co-operation with these authorities are set out in two memoranda of understanding Opens in a new window Opens in a new window which the signatories are required to review annually, including by seeking feedback from supervised firms. Co-operation supports effective supervision and policy making by sharing information between the regulators and promotes efficiency by minimising duplication on the financial market infrastructures (FMIs).

The Bank and FCA held a consultation with FMIs and reviewed their co-operation regarding market infrastructure – seeking in particular feedback on how the authorities had co-operated during the Covid market events of Spring 2020. The authorities concluded that the MoU’s arrangements for co-operation remain effective, with appropriate co-ordination and no material duplication. Industry respondents acknowledged the efforts made on co-operation and the Bank and FCA remain committed to effective co-operation.

The authorities recognise that policy co-operation will be even more important from 2021 as a result of the UK leaving the European Union. The authorities re-affirmed their commitment to co-operate domestically and internationally to ensure sound rulemaking that reflects awareness of each others’ objectives.

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