The FCA, PRA and the US SEC have entered into a Memorandum of Understanding (MoU) in relation to consultation, cooperation and the exchange of information in the supervision and oversight of certain over-the-counter derivatives entities that operate on a cross-border basis in the UK and the US. The MoU is intended to advance the regulators’ interests in fulfilling their respective regulatory mandates, in particular in the areas of:
- investor protection;
- maintenance of fair, orderly and efficient over-the-counter derivatives markets;
- capital formation; and
- mitigation of systemic risk.
The entities covered by the MoU are SEC-registered security-based swap dealers or major security-based swap participants which also have permissions under FSMA to carry on regulated activities relating to investment services and activities in the UK.