FCA speaks to EU on global cooperation

Ashley Alder, FCA Chair, has spoken at the UK Mission to the EU on the importance of regulatory cooperation and open markets, and the relationship the UK now hopes to build with the EU under the 2023 MoU. He said that all FCA’s objectives are fully aligned with an open market philosophy that encourages healthy competition that lowers costs for consumers and high, consistent and proportionate regulatory standards. He then discussed:

• the Overseas Funds Regime and the UK’s recent decision to grant equivalence to EU states;
• international cooperation to tackle the climate crisis – and how FCA’s new labelling regime is fully aligned with the International Sustainability Standards Board’s drive for global interoperability;
• the growth of fintech in all EU economies and the need to keep up to date with the risks – noting how technology has massively accelerated the speed at which bank runs can develop. He also noted the importance of FCA’s work to understand whether Big Tech firms are gaining entrenched market power; and
• the concerns that NBFIs have caused – with FCA seeing as a priority the need to improve data that would spot risks and supervise them credibly.

He finished by noting that FCA is well aware of the dangers of regulatory fragmentation and said that although the UK and EU are pursuing similar but not identical reforms, the UK will not be making change just for change’s sake.