On February 1st 2019, ESMA issued a press release regarding Memoranda of Understanding (the “Memoranda”) it has entered into with EU/EEA securities regulators and the FCA.
In case the United Kingdom leaves the European Union without a withdrawal agreement, the Memoranda will allow continuing supervisory cooperation, enforcement and information exchange between individual regulators and the FCA allowing them to share the information relating to market surveillance, investment services, and asset management activities. The Memoranda are similar to those already concluded on the exchange of the information with many third country supervisory authorities.
The Memoranda include:
- memorandum of understanding between ESMA and the FCA concerning the exchange of information in relation to the supervision of credit rating agencies and trade repositories;
- multilateral memorandum of understanding between ESMA, the FCA and EU securities regulators (the “Multilateral Memorandum”). The Multilateral Memorandum confirmed that the exchange of information needed for the orderly functioning of markets will continue regardless of the outcome of the Brexit negotiations, consequently enabling entities based in the United Kingdom to continue to carry out services in relation to portfolio and investment management on behalf of counter-parties based in the European Union.
The Multilateral Memorandum has been confirmed by the CSSF in the press release 19/07 dated February 1st 2019.