The UK and EU have signed the UK-EU Memorandum of Understanding on Financial Services Cooperation, HM Treasury announced on 27 June 2023. The memorandum was set up as a joint endeavour for both parties to “pursue a robust and ambitious bilateral regulatory cooperation” in the financial services area.

Objectives of the memorandum include preserving “financial stability, market integrity, and the protection of investors and consumers”, to be achieved via the following:

• Bilateral exchanges of views and analysis relating to regulatory developments and other issues of common interest
• Transparency and appropriate dialogue in the process of adoption, suspension, and withdrawal of equivalence decisions
• Bilateral exchanges of views and analysis relating to market developments and financial stability issues
• Enhanced cooperation and coordination including in international bodies as appropriate

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The memorandum also marks the establishment of the Joint UK-UE Financial Regulatory Forum, which is described as a platform that will represent the views of both the European Commission and HM Government. Forum meetings will be held at least semi-annually to “undertake forward planning of regulatory cooperation” and monitor progress.

View the full memorandum here.