The Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC) have agreed that the UK and Australia finance sectors can continue to interact, irrespective of the outcome of Brexit negotiations later this year, providing continuity and certainty to those dealing in financial services on both sides of the world.
The FCA was established to safeguard the fairness and effectiveness of the financial markets in the UK. It acts independently from the Government and its main responsibilities are to support and empower a healthy and successful financial system, in which firms can succeed and consumers can place their trust in transparent and open markets.
The aims and objectives of ASIC are parallel to the FCA. ASIC is an independent Commonwealth Government body which regulates companies, financial markets, financial services organisations and professionals in Australia, which advise in investments, superannuation, insurance, deposit taking and credit.
What are their post Brexit plans ?
Both countries’ financial markets need to be resilient and at the same time open and transparent, to meet the need of the consumers and sophisticated investors before, during and after Brexit.
Two Memoranda of Understanding (MoUs) have been agreed to cover trade repositories and alternative investment funds between Australia and the UK. These will come into force on the date EU law ceases to apply in the UK; or, when the UK leaves the EU or, at the end of the transition period if there is a withdrawal agreement.
The FCA has announced that the ASIC will continue to recognise the UK-based foreign financial services providers and market operators that operate in Australia under licenses and exemptions.
What does it mean for us?
Both countries’ financial regulators have historically maintained a close relationship on supervisory and enforcement matters. Brexit is not going to affect this relationship and in fact the MoUs will enhance cooperation and information sharing between the two countries.