Four financial regulators in the UK have a Memorandum of Understanding (MoU) that sets out the framework the authorities use to cooperate in relation to UK payment systems.
The Bank of England, the Financial Conduct Authority, the Prudential Regulation Authority and the Payment Systems Regulator are required to review the MoU annually as a part of the Financial Services (Banking Reform Act) 2013.
According to the BofE, senior represenatives from all four regulators have considered whether cooperation pursuant to the MoU is working. This process was informed by feedback from industry and regulatory practioners from each organisation. The Bank of England said it has concluded that the MoU is working well.
Adjacent to the completed review, the authorities have also implemented a slew of initiatives identified previously, such as the exchange of expertise, information and data.
In addition, the authorities have identified further opportunities to deepen cooperation and coordination, for example by continuing effective cross-authority coordination on reforms to payment legislation and further enhancing the sharing of information and data which will be implemented over the coming year.
The BofE added that in conducting this review, the four regulators have ‘emphasised their on-going commitment to working closely together on issues of common regulatory interest and avoiding duplication in their engagement with industry’.
