International and EU

Related information

For detailed information on the Money Laundering Regulations 2007 see the Financial Crime section.

Update

Please note that the Payment Services Directive information has moved to our Banking and Payments Regime section.

Call for expressions of interest for external experts on ESRB Advisory Scientific Committee

The European Systemic Risk Board (ESRB) was established on the 1 January 2011 in response to the global financial crisis and is the new body with responsibility for the macro prudential oversight of the financial system within the European Union.

As such it is a key part of the new European System of Financial Supervision (ESFS). The Advisory Scientific Committee consists of 15 experts and provides advice and assistance on issues relevant to the ESRB’s work.

The ESRB has issued a call for expressions of interest for external experts on this committees. The deadline is 1 March 2011 and further details can be obtained from the ESRB website.

London is one of the world's largest and most diverse international market-places. As the UK financial services regulator we play a key role in international regulation.

The crisis made it clear that there is an interconnectedness of the global economy and of the global financial markets. Risks posed by those interconnected global markets and firms are driving the need to build a strategic global approach to regulation. Only a coordinated approach among regulators will allow us to manage these risks through coordinated macro-prudential analysis, harmonised prudential rules, effective supervision of cross-border firms and fair, orderly and clean global markets.

International and European standard-setting regulatory organisations have become increasingly important in order to address risks and ensure the stability of the financial services market. The FSA actively participates in all of these fora. At the international level, these include the Basel Committee on Banking Supervision (BCBS), the International Organisation of Securities Commissions (IOSCO), the International Association of Insurance Supervisors (IAIS) and the Financial Action Task Force (FATF). These organisations strive towards agreeing global standards are typically then adapted and applied in domestic markets.

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At the European level Three new European Supervisory Authorities were created in January 2011 as part of a wave of legislation designed to create a new regulatory architecture within the EU in response to the crisis: the European Banking Authority; the European Insurance and Occupational Pensions Authority; and the European Securities and Markets Authority.  These new bodies will have a significant effect on the nature of financial services regulation and supervision within the EU.

Much of the UK’s financial services regulation already originates in the European Union through EU Directives. Since the UK has to give effect to European law, active engagement with Europe is essential. Indeed, it is estimated that around 70% of the FSA's policymaking effort is driven by European initiatives.

The Treasury has announced government plans for a new regulatory framework in the UK. This includes the creation of a new Prudential Regulation Authority (PRA), a subsidiary of the Bank of England that will have responsibility for prudential regulation of certain firms, and a new Financial Conduct Authority (FCA), which will assume conduct and market responsibilities currently undertaken by the FSA.

These changes, subject to the outcome of the consultation and a subsequent parliamentary process, are anticipated to come into effect in 2012. Throughout the transition period (which coincides with significant change in the European regulatory landscape) we will retain our focus on international engagement and develop appropriate collaboration and co-ordination mechanisms for the future. It is essential that the PRA and FCA are well equipped to interact in the ever changing and growing international arena.

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