U.S.-UK Financial Regulatory Working Group Joint Statement

Washington – U.S. and UK participants held the second meeting of the U.S.-UK Financial Regulatory Working Group (Working Group) on May 23, 2019 in Washington, DC.  The Working Group was formed to deepen our bilateral regulatory cooperation with a view to the further promotion of financial stability; investor protection; fair, orderly, and efficient markets; and capital formation in both jurisdictions.  This cooperation is especially important given transition in the United Kingdom’s regulatory relationships as it withdraws from the European Union.

Participants included officials and senior staff from the U.S. Department of the Treasury and HM Treasury, and from the U.S. and UK independent regulatory agencies, including the Board of Governors of the Federal Reserve System, Commodity Futures Trading Commission, Federal Deposit Insurance Corporation, Office of Comptroller of the Currency, Securities and Exchange Commission, the Bank of England, and the Financial Conduct Authority.  U.S. and UK participants shared views on issues in their respective areas of responsibility.

At the meeting, U.S. and UK participants discussed the outlook for financial regulatory reforms and future priorities, including possible areas for deeper regulatory cooperation to facilitate further safe and efficient financial services activity between U.S. and UK markets.  They also discussed the implications of the United Kingdom’s exit from the EU on financial stability and cross-border financial regulation.

Participants recognized the importance of regulatory cooperation in fostering the bilateral activity of U.S. and UK financial services firms.  Participants also reported on the Working Group’s progress since the inaugural meeting in September 2018, including successfully extending existing bilateral financial regulatory arrangements between the United States and the European Union with respect to the United Kingdom and updating existing bilateral financial regulatory arrangements between the United States and United Kingdom.  This was necessary to ensure supervisory and regulatory continuity as the United Kingdom exits the European Union.  Additionally, both sides recognized the importance of financial innovation and took note that U.S. Treasury and HM Treasury will soon launch a partnership to promote further engagement on financial services innovation, including with firms seeking to grow internationally in our markets.

Participants identified follow-up work for the Working Group on these topics and other cross-border issues.  The next meeting of the Working Group will be in the second half of 2019 in London.  Bilateral contacts will continue, as appropriate, outside the Working Group on any issue related to our ongoing financial regulatory cooperation.