The Financial Conduct Authority (FCA) and the Bank of England (BoE), including the Prudential Regulation Authority (PRA), have a Memorandum of Understanding (MoU) that sets out how they cooperate with one another in relation to the supervision of markets and market infrastructure. The Financial Services Act 2012 introduced an obligation to review this MoU annually. The FCA and the BoE committed that this review would include feedback from industry and the findings would be published, the first review was published in 2014.
The FCA and BoE have carried out their second review of cooperation during 2014. The CEO of the FCA and the Deputy Governor Financial Stability at the BoE considered the views of industry and staff, concluding that the MoU’s arrangements for cooperation have worked well, with appropriate coordination and no material duplication. They emphasised their continued commitment to effective cooperation and that staff should work together to take forward those suggested improvements identified by industry and the necessary revisions to the MoU and supporting coordination processes in light of the new Payment Systems Regulator (PSR).