Technical discussions between the United Kingdom and the European Union about the text of a financial regulatory Memorandum of Understanding, which was agreed in line with the Trade and Co-operation Agreement, have now been concluded.
The parties have to take formal steps before signing the MoU but, in the words of HM Treasury, "it is expected that this can be done expeditiously."
The MoU, once signed, creates rules for voluntary regulatory co-operation in financial services between the UK and the EU. It will establish a "Joint UK-EU Financial Regulatory Forum," a platform on which the two parties will make megahone-like declarations to each other about the issues of the day in financial services.
All this is designed to be in line with a "Joint Declaration on Financial Services Regulatory Co-operation" which the two parties signed on the last day of 2020. Parts 1 and 2 of this declaration say that they want to: (i) exchange views and analysis relating to regulatory initiatives and other issues of interest; (ii) establish 'transparency' (whatever that means) and dialogue in the process of adoption, suspension and withdrawal of 'equivalence' decisions; and (iii) co-operate and co-ordinate things very closely, especially in international bodies (an EU favourite); and (iv) agree an MoU 'by March 2021' that establishes framework for this co-operation.