International & EU

 

 

As an international financial centre, the UK is host to a wide range of overseas firms and is home to financial markets that are highly integrated with the global economy. Many UK firms also have significant operations overseas. As a result, there is an important international dimension to our work.

In doing this work, we take account of the principle of good regulation in the Financial Services and Markets Act 2000 (FSMA), that says the Financial Services Authority (FSA) should have regard to the 'international character' of UK financial services and markets. So we are often asked about our approach to international engagement, including us giving other authorities technical help. Given the resource commitment involved, it is important that stakeholders understand the basis for our international-facing work and how it is linked to our statutory objectives. 

FSA engagement is targeted

The most important parts of our international work can be considered under three broad headings.

Operational engagement

First, there is a clear operational need for us to maintain and develop, where appropriate, cooperative relationships with other regulators to promote the effective oversight of cross-border firms. We also need to work together to address instances of market failure in international markets; and to counter international financial crime groups. For larger, more complex firms this may involve regulatory colleges as well as bilateral contact. We also use memoranda of understanding (MoUs) and other information-sharing arrangements to allow us to exchange data (see link to International MoUs). 

International committee engagement

Second, we participate actively in a number of EU and international committees that set EU or global regulatory standards and promote regulatory convergence. In the EU we are active members of the Committee of European Banking Supervisors (CEBS), Committee of European Securities Regulators (CESR) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS). Globally, we participate in the Financial Stability Forum (FSF), the Financial Action Task Force (FATF) on anti-money laundering, the International Organization for Securities Commissioners (IOSCO), the International Association of Insurance Supervisors (IAIS) and the Basel Committee on Banking Supervision (BCBS).

Technical engagement

Third, we recognise the importance of providing technical support to (and also learning from) other regulators in developing their regulatory techniques. This often involves explaining aspects of our regulatory regime to others.  We do not have the resources to provide a bespoke training centre or offer a major inward secondment programme, although we have in the past taken small numbers according to our ability to provide meaningful and mutually-beneficial placements.  And as a policy matter, we do not hold out the UK model as the 'right' one which others should follow.