UK FCA and ASIC agree to strengthen co-operation post-Brexit

The UK Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC) have agreed to two memorandums of understanding to ensure there is continuity once the UK leaves the European Union.

These agreements will provide reassurance by ensuring arrangements are in place for cross-border co-operation between the FCA and ASIC. The FCA and ASIC also support the continuity of existing equivalence decisions to provide certainty to businesses post-Brexit.

“The FCA and ASIC have always had a strong relationship, which will continue after Brexit,” FCA chief executive Andrew Bailey said.

“The MoUs will also provide much-needed assurance to our regulated stakeholders. We also support the continuity of existing equivalence decisions, which will minimise disruption for firms in the UK and Australia.”

While the FCA and ASIC have always maintained a very close relationship on supervisory and enforcement matters, ASIC chair James Shipton explained that these two MOUs will enhance co-operation 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,” Mr Shipton said.

The MoUs will enter into force on the date EU legislation ceases to have direct effect in the UK. This will occur when the UK leaves the EU, or at the end of the transition period if a withdrawal agreement is in place.