PART 4

Collaboration between Treasury and Bank of England, FCA or PRA

Memorandum of understanding: international organisations
66
1
The Treasury, the Bank of England, the FCA and the PRA (“the UK authorities”) must prepare and maintain a memorandum describing how they intend to co-ordinate the exercise of their relevant functions so far as they relate to membership of, or relations with, the European Supervisory Authorities, EU institutions and other international organisations.
2
The “European Supervisory Authorities” are the European Banking Authority, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority.
3
“Relevant function”—
a
in relation to the FCA or the PRA, means any of its functions;
b
in relation to the Bank of England, means any of its functions relating to the stability of the UK financial system or the regulation of financial services;
c
in relation to the Treasury, means any of their functions relating to the matters mentioned in paragraph (b).
4
The memorandum is to be made with a view to ensuring—
a
that, to the extent that it is appropriate to do so, the UK authorities agree consistent objectives in relation to matters of common interest;
b
that, to the extent that it is appropriate to do so, they exercise their relevant functions in a way that is likely to advance those objectives;
c
that they exercise their relevant functions in a way that is consistent and effective.
5
The memorandum must, in particular, make provision—
a
stating, in relation to each of the UK authorities, those international organisations of which it is a member or with which it has relations and which are concerned with matters that are related to its relevant functions;
b
for there to be a committee for the purposes of the co-ordination mentioned in subsection (1);
c
for that committee to include representatives of the UK authorities and to be chaired by a representative of the Treasury;
d
about the procedures to be followed by the UK authorities in agreeing consistent objectives in relation to matters that materially affect 2 or more of them;
e
about how the UK authorities will consult each other about the discharge of their relevant functions relating to international organisations.
6
The memorandum need not make provision about co-ordination between the FCA and the PRA in relation to membership of, or relations with, the European Supervisory Authorities (as to which, see section 3E of FSMA 2000).
7
The UK authorities may, with the agreement of a body exercising functions relating to the stability of the UK financial system or the regulation of financial services, include in the memorandum provisions relating to co-operation between any of them and that body in relation to membership of, or relations with, the European Supervisory Authorities, EU institutions and other international organisations.
8
The Treasury must—
a
lay before Parliament a copy of the memorandum and any revised memorandum, and
b
publish the memorandum as currently in force in such manner as they think fit.
S. 66 in force at 24.1.2013 for specified purposes by S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3
S. 66 in force at 1.4.2013 in so far as not already in force by S.I. 2013/423, art. 3, Sch.