Financial services: Commission adopts draft Memorandum of Understanding with the United Kingdom
The Commission has today adopted a draft Memorandum of Understanding (MoU) establishing a framework for structured regulatory cooperation in the area of financial services with the United Kingdom. This follows on from the Joint Declaration on Financial Services Regulatory Cooperation between the European Union and the United Kingdom – which accompanies the Trade and Cooperation Agreement (TCA). It is now subject to final political endorsement by the Council, before it can be signed by the Commission on behalf of the EU.
Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union, said: “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.”
The MoU, once signed by both Parties, will create the administrative framework for voluntary regulatory cooperation in the area of financial services between the EU and the UK, outside of the TCA structures. This includes the establishment of a Joint EU-UK Financial Regulatory Forum, which will serve as a platform to facilitate structured dialogue on issues related to financial services, similar to what the Commission has with other third country jurisdictions, such as the United States.
The MoU does not deal with the access of UK-based firms to the Single Market – or EU firms’ access to the UK market – nor does it prejudge the adoption of equivalence decisions.
Throughout the process, the European Commission has engaged closely with the European Parliament and the Council. On the EU’s side, the legal form of the text is a Union Non-Binding Instrument.