Domestically, the Bank co-operates with both the Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR) in relation to supervising financial market infrastructure (FMI) and payment systems respectively. The frameworks for co-operation with these authorities are set out in two memoranda of understanding which the signatories are required to review annually, including by seeking feedback from supervised firms. Co-operation supports effective supervision and policy making by sharing information between the regulators and promotes efficiency by minimising duplication on the FMIs.
The Bank and FCA held a consultation with FMIs and reviewed their co-operation regarding market infrastructure in 2018. The authorities concluded that the MoU’s[1] arrangements for co-operation remain effective, with appropriate co-ordination and no material duplication. Industry respondents acknowledged the efforts made on co-operation and the Bank and FCA remain committed to effective co-operation. The authorities will update the MoU to ensure it continues to appropriately reflect their respective roles and responsibilities once the United Kingdom has left the EU.