Domestically, the Bank co-operates with both the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR) in relation to supervising market infrastructure and payment systems respectively. The frameworks for co-operation with these authorities are set out in memorandums of understanding which the signatories are required to review annually.
- MoU between the Bank of England, FCA, PSR and PRA (PDF)
- MoU between the Bank of England, including the PRA, and the FCA re: regulation of Recognised Investment Exchanges and Clearing Houses (PDF)
The Bank and FCA reviewed their co-operation regarding supervision of market infrastructure in 2016 and concluded that the MoU’s arrangements for co-operation remain effective, with appropriate co-ordination and no material duplication. Industry respondents acknowledged the efforts made on co-operation and emphasised its importance for product approvals and policy initiatives. The authorities remain committed to effective co-operation and staff will work together to take forward those suggested improvements identified by industry to enhance co-ordination between the authorities where a new product or project encompasses trading platforms and clearing houses in the same group.
A review of the first year of co-operation between the Bank, PSR, FCA and PRA was published in July 2016 and concluded that co-operation and co-ordination under the MoU is working well. Some minor changes to the MoU were agreed to reflect the expansion of the PSR’s remit since the MoU was first signed in 2015.