PART 1A

The Regulators
CHAPTER 3

Further provisions relating to FCA and PRA

Relationship between FCA and PRA

Memorandum of understanding
3E
1
The regulators must prepare and maintain a memorandum which describes in general terms—
a
the role of each regulator in relation to the exercise of functions conferred by or under this Act which relate to matters of common regulatory interest, and
b
how the regulators intend to comply with section 3D in relation to the exercise of such functions.
2
The memorandum may in particular contain provisions about how the regulators intend to comply with section 3D in relation to—
a
applications for Part 4A permission;
b
the variation of permission;
c
the imposition of requirements;
d
the obtaining and disclosure of information;
e
cases where a PRA-authorised person is a member of a group whose other members include one or more other authorised persons (whether or not PRA-authorised persons);
f. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
g
the making of rules;
ga
directions under section 71O (designated activities: directions);
h
directions under section 138A (modification or waiver of rules);
i
powers to appoint competent persons under Part 11 (information gathering and investigations) to conduct investigations on their behalf;
j
functions under Part 12 (control over authorised persons);
k. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
l
functions under Part 19 (Lloyd's);
m
functions under section 347 (record of authorised persons
etc.
);
n
functions under Part 24 (insolvency);
o
fees payable to either regulator.
3
The memorandum must contain provision about the co-ordination by the regulators of—
a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b
their relations with regulatory bodies outside the United Kingdom, and
c
the exercise of their functions in relation to the compensation scheme.
4
The regulators must review the memorandum at least once in each calendar year.
5
The regulators must give the Treasury a copy of the memorandum and any revised memorandum.
6
The Treasury must lay before Parliament a copy of any document received by them under this section.
7
The regulators must ensure that the memorandum as currently in force is published in the way appearing to them to be best calculated to bring it to the attention of the public.
8
The memorandum need not relate to any aspect of compliance with section 3D if the regulators consider—
a
that publication of information about that aspect would be against the public interest, or
b
that that aspect is a technical or operational matter not affecting the public.
9
The reference in subsection (1)(a) to matters of common regulatory interest is to be read in accordance with section 3D(3).
Pt. 1A substituted for Pt. 1 (24.1.2013 for specified purposes, 19.2.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 6(1), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(b)(c)(2), Sch. Pts. 2, 3, 4; S.I. 2013/423, art. 3, Sch.
S. 3E applied (with modifications) (6.4.2018 immediately after 2016 c. 16 (N.I.), s. 8(2) comes into force) by The Financial Services Act 2012 (Mutual Societies) Order 2018 (S.I. 2018/323), art. 1, Sch. 1 para. 2(2)(d) (with art. 3)
S. 3E(3)(a) omitted (31.12.2020) by virtue of The Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/632), regs. 1(3), 7; 2020 c. 1, Sch. 5 para. 1(1)
S. 3E(2)(k) omitted (31.12.2020) by virtue of The EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 (S.I. 2018/1149), reg. 1(3), Sch. para. 2 (with reg. 4); 2020 c. 1, Sch. 5 para. 1(1)
S. 3E(2)(ga) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 8(4), 86(3); S.I. 2023/779, reg. 4(e)
S. 3E(2)(f) omitted (31.12.2020) by virtue of The EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 (S.I. 2018/1149), reg. 1(3), Sch. para. 2 (with reg. 4); 2020 c. 1, Sch. 5 para. 1(1)