The memorandum of understanding (MoU) between the SFC and the FCA provides a framework for the two regulators to guarantee mutual assistance, exchange regulatory information and cooperate in the supervision of financial market participants and other cross-border regulated entities.
The memorandum came into effect on 7 July, when it was signed by SFC chief executive Ashley Alder and by FCA chief executive Andrew Bailey.
The MoU “enables the two authorities to cooperate with each other in the interest of fulfilling their respective regulatory mandates and enhance their supervisory functions”, an announcement by the SFC said on Thursday.
The agreement does not create any legally binding obligations, nor it limits the regulators’ ability to act unilaterally in fulfilment of its supervisory functions, it specified.
The authorities will periodically review the functioning and effectiveness of the arrangement with a view to expanding or altering the scope of the MoU, should it be deemed necessary.
