UK and Dutch financial regulators agreed to work more closely together to protect and enhance the integrity and stability of both countries financial systems.
During a meeting on 3 June 2019 in London, the Financial Conduct Authority (FCA) and the Dutch Authority for the Financial Markets (AFM) signed a joint agreement to formalise this partnership.
Since the UK announced its intention to withdraw from the EU, several financial institutions currently operating in the UK and the Netherlands have applied for a licence to operate in the respective countries. Close cooperation and information sharing between the FCA and AFM is vital to developing global markets, ensuring effective oversight of firms and capital markets, and allowing both to more effectively fulfil their roles as regulators.
The agreement builds on the tight bond the UK and Dutch authorities already have and it also develops the relationship in areas such as FinTech, a pro-active and data-led approach to supervision and encouraging proper behaviour within firms.
Andrew Bailey, Chief Executive of the FCA said:
“We have always had a strong relationship with the Dutch AFM and this agreement strengthens that relationship. Given the increasing interconnectedness of financial services markets, having close relationships with other countries’ regulators helps to ensure that we can protect consumers and maintain our oversight of firms and markets”
Merel van Vroonhoven, Chair of the AFM said:
“We are looking forward to working together in this partnership. We see UK financial institutions moving to the Netherlands, especially international regulated markets, other trading platforms and traders. Their choice for the Netherlands will impact our 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 minimise risks.”
Alongside information sharing the FCA and AFM will also share best practice approaches, explore the scope for secondments between the regulators and expert training opportunities. These will foster even stronger and sustainable relationships between the regulators.
Notes to editors
- This will apply in a Deal and No Deal scenario, and will accompany the Multilateral Memorandum of Understanding between the FCA and EU regulators announced in February 2019.
- On 1 April 2013, the FCA became responsible for the conduct supervision of all regulated financial firms and the prudential supervision of those not supervised by the Prudential Regulation Authority (PRA).
- The FCA has an overarching strategic objective of ensuring the relevant markets function well. To support this, it has three operational objectives: to secure an appropriate degree of protection for consumers; to protect and enhance the integrity of the UK financial system; and to promote effective competition in the interests of consumers.
- Find out more information about the FCA and the PRA.