Cooperation and Coordination between UK Financial Authorities: An Assessment of the Memorandum of Understanding

The Bank of England (BoE), Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA), and Payment Systems Regulator (PSR) have conducted a review of their Memorandum of Understanding (MoU) to assess whether their cooperation is effective. This review was informed by feedback from industry experts.

Overall, the four Authorities have concluded that the MoU continues to function well. They have successfully shared knowledge, information, and data related to regulated activities. The Authorities are constantly working together on matters of mutual regulatory interest and strive to avoid duplicity in their requirements and interactions with industry.

They have also identified certain areas for further cooperation and coordination in the future. These include amendments to the MoU to address potential regulation of stablecoins, implementing reforms outlined in the proposed Financial Services and Markets Act 2023, and improving information and data sharing practices. These initiatives will be undertaken in 2024 and beyond.

Furthermore, the Authorities will continue to collaborate with the Treasury as it develops its National Payments Vision. This partnership aims to create a cohesive approach to payments infrastructure across the UK. In summary, the BoE, FCA, PRA, and PSR are satisfied with the current state of their MoU and have plans to enhance their cooperation in the future. Their ongoing collaboration with the Treasury demonstrates a commitment to promoting a strong and efficient financial system in the UK.