Post-Brexit UK-EU Memorandum Of Understanding Adopted

• Jurisdiction: European Union
• Law Firm: Katten Muchin Rosenman LLP
• Subject Matter: Finance and Banking, Financial Services
• Author: Ms Carolyn Jackson, Neil Robson, Nathaniel Lalone, Christopher Collins and Ciara McBrien
• Published date: 29 May 2023

On 17 May 2023, the European Commission ("Commission") published a press release announcing that - as a major post-Brexit milestone - it has adopted a draft memorandum of understanding ("MoU") on regulatory cooperation in financial services with the UK.

This follows the Joint Declaration on Financial Services Regulatory Cooperation between the UK and the EU, which accompanied the Trade and Cooperation Agreement ("TCA").

The Commission states that the MoU is now subject to final political endorsement by the Council of the EU. Once endorsed, the Commission can sign the MoU on behalf of the EU. Additionally, Andrew Griffith, Economic Secretary to the Treasury, stated that the UK "stands ready" to sign the MoU.

The MoU intends to set out the post-Brexit framework for voluntary regulatory cooperation in financial services between the UK and the EU, outside of the TCA. It will establish the Joint UK-EU Financial Regulatory Forum, which will facilitate dialogue on financial services issues. The MoU aims to improve coordination between the UK and the EU, and...