June 6, 2019, | AtoZ Markets - The UK Financial Conduct Authority (FCA) and Dutch Authority for the Financial Markets (AFM) have announced about their common agreement forming a closer partnership in case of the hard Brexit.
Global financial regulators are getting ready to the worst Brexit scenario
Upcoming Brexit keeps triggering more concerns on business relations between the EU and the UK. Thus the financial regulators, not only in the EU but in other continents as well, are preparing for their post-Brexit financial market regulations.
The Financial Conduct Authority (FCA) in the UK and the Australian Securities and Investments Commission (ASIC) have already confirmed that they will keep mutual cooperation and coordination regardless of any Brexit developments. Both regulators agreed on two Memoranda of Understanding, in correspondence with the G20 taxation regulations.
The authorities believe that due to the increasing interconnectedness of financial services markets, having close relationships with other countries’ regulator's will ensure that consumers' protection and maintain oversight of firms and markets.
The new deal between UK FCA and Dutch AFM will mainly focus on data sharing. The regulators will also be examining best practices together, training with one another and shift employees between London and the Hague for secondments.
Both financial agencies are positive about the collaboration
In a statement, the FCA confirmed that the partnership was due to Brexit. The regulator noted that in case of hard Brexit, many firms have opened subsidiaries in the Netherlands so that they can be they sure they will still be able to do business in the EU. Both regulators shared their insights on the upcoming collaboration. AFM chairman Merel van Vroonhoven states, that they are “looking forward to working together in this partnership.”
The UK FCA chief executive officer Andrew Bailey in his turn noted:
“We have always had a strong relationship with the Dutch AFM and this agreement strengthens that relationship”
The AFM official added, that FCA’s choice for the Netherlands will impact local capital markets and trading infrastructure.
“The closer cooperation with the FCA will put us in a better position to protect investors and capital markets through the sharing of information and expertise to minimize risks,” Merel van Vroonhoven concluded.
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