ASIC, FCA fortify post-Brexit cooperation

ASIC, FCA fortify post-Brexit cooperation | Insurance Business

ASIC, FCA fortify post-Brexit cooperation

The Australian Securities and Investments Commission (ASIC) has inked two memoranda of understanding with the UK Financial Conduct Authority (FCA) on trade repositories and alternative investment funds (AIFs) to ensure there is continuity once the UK leaves the European Union.

The deals will ensure arrangements are in place for cross-border cooperation between the two regulators, as well the continuity of existing equivalence decisions to provide certainty to businesses post-Brexit.

Read more: UK insurance firms are well-prepared for Brexit – AM Best

“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,” said James Shipton, ASIC chair. “Our commitment to ensuring the continuity of equivalence decisions will provide certainty to businesses and consumers and contribute to a fair, strong, and efficient financial system.”

“The FCA and ASIC have always had a strong relationship, which will continue after Brexit,” said Andrew Bailey, FCA chief executive. “The MoUs we have agreed today will ensure the FCA and ASIC have uninterrupted exchange of information and can supervise the 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. The MoUs will also provide much-needed assurance to our regulated stakeholders. We also support the continuity of existing equivalence decisions which will minimise disruption for firms in the UK and Australia.”

The MOUs will take effect on the date EU legislation ceases to have direct effect in the UK.