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EU markets watchdog approves Brexit agreement with UK

Staff Writer |
The European Union's markets watchdog said it has approved an agreement on supervisory cooperation with Britain after Brexit to avoid disruption to cross-border financial services like asset management.

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"The board agreed in substance the Memorandum of Understanding and will provide more detail shortly," a spokesman for the European Securities and Markets Authority (ESMA) said on Thursday.

The MoU was negotiated with Britain's Financial Conduct Authority (FCA) to ensure that regulators in the bloc and London agree to exchange information on financial firms that have cross-border business.

The announcement "brings much needed certainty for asset managers," said Chris Cummings, chief executive of the Investment Association, Britain's asset management trade body.

"These agreements ensure that delegation of portfolio management, and the necessary exchanges of information needed for the orderly functioning of markets, can continue regardless of the outcome of the Brexit negotiations," he added.

Britain is due to leave the EU on March 29 and an MoU is a standard feature of supervisory relations between the bloc and non-EU countries.

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