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Regulation

U.K. FCA, Australian Securities and Investments Commission reach post-Brexit deal

The U.K. Financial Conduct Authority and Australian Securities and Investments Commission agreed to boost cooperation after the U.K. leaves the European Union.

The U.K. Financial Conduct Authority and Australian Securities and Investments Commission agreed to boost cooperation after the U.K. leaves the European Union, the FCA said Monday.

Memoranda of understanding covering trade repositories and alternative investment funds will enter into force on the date the EU law ceases to apply in the U.K. when the country leaves the union, or at the end of the transition period if there is withdrawal agreement.

ASIC will also continue to recognize U.K.-based foreign financial services providers and market operators that operate in Australia under licenses and exemptions post-Brexit, the FCA said.

ASIC will continue to access data on derivatives contracts held in U.K. trade repositories, the FCA said.

The U.K. will adopt existing EU equivalence decisions that relate to Australia's supervisory and regulatory regime for trading venues, over-the-counter derivatives markets and credit rating agencies.

"The MoUs provide a strong signal to the markets that the U.K. will continue to play an important role after Brexit. The MoUs will also provide much-needed assurance to our regulated stakeholders," Andrew Bailey, chief executive of the FCA, said in a news release.

"We also support the continuity of existing equivalence decisions, which will minimize disruption for firms in the U.K. and Australia," he added.

James Shipton, chairman of ASIC, added in the news release: "While the FCA and ASIC have always maintained a very close relationship on supervisory and enforcement matters, these two MoUs will enhance cooperation and information sharing between the authorities. Our commitment to ensuring the continuity of equivalence decisions will provide certainty to businesses and consumers and contribute to a fair, strong and efficient financial system."