Bank of England and FCA form MoU on FMI supervision
21 July 2025 UK
Image: Anthony_Shaw/stock.adobe.com
The Bank of England (BoE) has co-operated with the Financial Conduct Authority (FCA) to supervise financial market infrastructure (FMI).
The framework for cooperation is set out in a Memorandum of Understanding (MoU), which facilitates supervision and policy making by exchanging information between the regulators, and promotes efficiency by minimising duplication of regulatory activities regarding FMIs.
Signatories must review the MoU annually to confirm whether the intended arrangements are proving effective.
This involves requesting feedback from supervised firms on whether the proposed cooperation is working effectively as part of the review process.
The BoE and FCA wrote to FMIs — central counterparties, recognised investment exchanges, and recognised central securities depositories — to review their cooperation, based on these firms’ interaction in 2024.
Respondents specifically noted the benefits of a coordinated approach to work on operational resilience, noting the value in clearer reporting expectations, and consistent frameworks for reporting, according to the BoE.
The authorities will continue to adopt a coordinated approach as they progress towards publication of a final policy statement in the second half of 2025.
The framework for cooperation is set out in a Memorandum of Understanding (MoU), which facilitates supervision and policy making by exchanging information between the regulators, and promotes efficiency by minimising duplication of regulatory activities regarding FMIs.
Signatories must review the MoU annually to confirm whether the intended arrangements are proving effective.
This involves requesting feedback from supervised firms on whether the proposed cooperation is working effectively as part of the review process.
The BoE and FCA wrote to FMIs — central counterparties, recognised investment exchanges, and recognised central securities depositories — to review their cooperation, based on these firms’ interaction in 2024.
Respondents specifically noted the benefits of a coordinated approach to work on operational resilience, noting the value in clearer reporting expectations, and consistent frameworks for reporting, according to the BoE.
The authorities will continue to adopt a coordinated approach as they progress towards publication of a final policy statement in the second half of 2025.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Â鶹´«Ã½ Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Â鶹´«Ã½ Finance Times
