The Bank of England (Bank) co-operates with the Financial Conduct Authority (FCA) (‘The Authorities’), to supervise financial market infrastructure (FMI).
A memorandum of understanding (MoU) facilitates effective supervision and policy making by the authorities. The MoU allows for the exchange of information between the authorities and promotes efficiency by minimising duplication of regulatory activities regarding FMIs. The MoU must be reviewed annually to ensure it is proving effective. This involves requesting feedback from supervised FMIs on whether the proposed co-operation is working effectively.