On April 19, HM Treasury and the US Treasury Department published a joint statement announcing the formation of a US-UK Financial Regulatory Working Group (Working Group). The joint statement explains that Brexit provides an opportunity for the Working Group to formalize existing US-UK regulatory cooperation.
The Working Group will include staff from the respective treasury departments together with those from applicable US and UK financial regulatory authorities. It will aim to promote: (1) financial stability; (2) investor protection; (3) fair, orderly and efficient markets; and (4) capital formation, in the United Kingdom and United States.
To further financial regulatory cooperation, the Working Group’s operational objective combines:
- improving transparency;
- reducing uncertainty;
- identifying potential cross-border implementation issues;
- aiming to avoid regulatory arbitrage; and
- increasing compatibility, where appropriate, of respective national laws and regulations.
As explained in the joint statement, both treasury departments anticipate that the Working Group will meet twice a year, with additional ad hoc technical meetings and calls taking place as needed. Bilateral contacts outside of the Working Group, in relation to ongoing US-UK financial regulatory cooperation, will continue as appropriate.
The joint statement, as published by HM Treasury, is available here.