Tuesday , October 26 2021

BREXIT BREAKTHROUGH: Financial regulators in the UK and the EU agree that there are no deals | Politics News


The Memorandum of Understanding (MoU) was discussed with the British Financial Management Authority (FCA) to ensure that the blocks and London regulators agree to exchange information on financial companies with cross-border transactions. Andrew Bailey, CEO of FCA, said the agreements should "reduce potential disruption, which we know is particularly important for investment management, credit rating agencies and trade repositories". The deal smoothes the way for regulators in the UK and in the other 27 EU Member States to co-operate in the monitoring of investment funds and to share data.

The Memorandum of Understanding is a standard feature of the monitoring elements between the block and the non-member countries, and if there were no 'delegation' for asset managers in the UK to make investments in the funds listed in the fund.

The representative of the European Securities and Markets Authority (ESMA) approved terms had "agreed".

Chris Cummings, Chief Executive Officer of the UK Investment Association, a UK asset management trading organization said the statement "makes it a great necessity for asset managers".

He added: “These agreements ensure that the delegation of portfolio management and the necessary exchange of information required for the proper functioning of markets can continue regardless of the outcome of the Brexit negotiations.

“It is a welcome news for millions of depositors across Europe, with a total of around £ 1.8 billion in savings managed by experts in the UK. Asset managers – and critical to their customers – will now have the confidence that the UK delegation will continue. ”

Patrice Bergé-Vincent, Managing Director of ICI Global, a US asset management lobby, said: “Over the past two years, global asset managers have taken many steps to protect their ability to serve investors and engage in European capital markets.

"The Memorandum of Understanding between the FCA and ESMA, as well as the model agreements between individual EU regulators and the FCA, would provide additional confidence in this process, helping to maintain fund allocation and investment in the event that the UK withdraws from the EU without a mutual agreement plan. ”

The UK's chances of leaving the EU without an agreement will increase to the day when the impasse with Brussels continues.

Members of the House of Representatives mandated the Prime Minister to resume the cancellation agreement and make changes to the controversial 'backstop' of Ireland and replace it with 'alternative measures'.

However, EU leaders have retained a legally binding agreement, agreed in November 2018, with more than two years to reach an agreement, will not change and will remain the "only solution".

The default position of the UK will be to withdraw from the EU without an agreement if the agreement is not reached by 29 March.

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