FCA and Australian regulator sign deal for post-Brexit security

By Hope William-Smith

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Apr 16, 2019

The FCA has agreed on a memorandum of understanding with Australian counterpart regulator, the Australian Securities and Investments Commission.

The agreement is hoped to provide reassurance for the UK market and strengthen cross-border cooperation with Australia including open information exchanges.

The FCA says the  MoUs will enter force on whatever date EU legislation ceases “direct impact” on the UK.

Chief executive Andrew Bailey says: “The FCA and ASIC have always had a strong relationship and the MoUs agreed today will ensure we have an uninterrupted exchange of information and can supervise cross-border activity of firms.

“They provide a strong signal to the markets that the UK will continue to play an important role after Brexit and provide much-needed assurance.”

The agreements also support the continuity of existing equivalence decisions to “minimise disruption” for firms in both nations, Bailey adds.

The MoUs cover trade repositories and alternative investment funds with the FCA set to acquire additional functions and supervisory controls currently under the remit of the European Securities and Markets Authority.

ASIC chair James Shipton says: “ASIC is pleased to have cooperation arrangements in place with the FCA on trade repositories and alternative investment funds.

“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.”

ASIC will be able to continue its access to date on derivatives contracts held in UK trade repositories under the terms of the MoU.

It will also cover Australian managers that manage or market alternative investment funds in the UK and vice versa.

ASIC is currently undergoing a raft of changes to its own remit and supervisory powers following the mass collapse of bank-controlled financial advice in Australia that has followed findings from the Royal Commission into Banking, Superannuation and Financial Services.

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